Fortis Properties owner/operators of the Delta Hotel has an application before the City of St. John’s to initiate an estimated $15 million expansion at its existing New Gower Street site.

The project, expected to get underway this spring and be completed in 12 months, involves the construction of a 12 storey structure with 126 rooms on the western side of the Delta toward Springdale Street. John Walker, president and CEO of Fortis Properties said since the company acquired the Delta in December 2002, the facility’s “performance has exceeded company expectations.”

“The expansion of this property will enable us to meet the market demands and attract additional group convention and conference business to the city,” Walker said.

St. John’s Coun. Frank Galgay, whose Ward 2 encompasses the downtown core, said the hotel’s expansion plan is good news, a project that will “add to the increased need for accommodations, especially for major national and international conferences and expansion in the tourism industry.” The expansion will also result in “a source of (new) tax revenue for the city,” he said.

Once completed, the expanded wing of the hotel will raise the room count to more than 400, a plan that will result in the Delta becoming the largest convention hotel in the Atlantic region.

Mike Buist, general manager of the Avalon Convention and Visitors’ Bureau said when groups such as Fortis build or expand existing hotels they do their homework. “If you look at the hotel statistics in our destination over the last four or five years, there’s a definite growth pattern and I think everybody is looking for that to continue,” he said. “It’s tremendous news.”

Based on in-season statistics, May through October there are many nights in St. John’s when the accommodations sector is “over sold” he said. “We have never tracked out turn away where people didn’t come because they couldn’t get bookings,” he said.

Buist said the expansion of existing hotels and establishment of new ones are also driven by increased activity at the St. John’s convention center a building that draws major conventions with up to 1500 delegates. While there’s demand for in-season accommodations Buist said the big challenge will be filling some of the void in the winter period – November to April.

“Without a ski hill and without a major winter product we’re going to have to really devote resources to what I refer to as event tourism sport and cultural to help fill the rooms in this off-season,” he said.

Statistics indicate there are about 1700 accommodation rooms in the city through hotels, motels and bed and breakfast establishments with an estimated 300 to be added over the next 12 months through the Delta expansion and establishment of new hotels at Bell’s Turn/Higgins Line, Kenmount Road and Downtown St. John’s.

Buist said the 2003-04 winter season is a good example of where the accommodation sector benefited from event tourism with the city hosting the Under 17 World Hockey Championship, the East Coast Music Awards, Hospitality Newfoundland and Labrador convention and the world curling tour scheduled to begin March 31 in St. John’s. “It doesn’t really matter what it is, as long as we can put heads in beds,” he said.

Considering the Delta expansion 1,000 square meters and adjoins a residential district the city requires the proponent conduct a land use assessment report a document that will have to address things like view planes, traffic and noise.

Aside from the parking space that currently exists under the Delta Hotel and adjacent Cabot Place, Fortis Properties plans to provide above-ground parking near the new wing for hotel guests. Zoning isn’t an issue because the area is already classified as commercial central office with a hotel being permitted in the zone.

Galgay said it’s important area residents in particular get an opportunity to have input in the development plan. “When the land use assessment report is submitted to council it will be reviewed by City staff,” he said. “The report will be advertised and made available to the public for review and commentary before it is finally presented to council for approval.”

Buist meanwhile said increased expansion in the hotel sector will lead to about 300 new full time jobs and various spin-offs including benefits to the construction industry.

The Telegram. Thursday, March 25, 2004. Craig Jackson.