OTB board continues discussion of hotel expansion at Batavia Downs
Expanding the Batavia Downs Hotel seems like a good idea to Byron Brown, who discussed the idea in his first board meeting on Wednesday since starting his new position as president and CEO of Western Regional Off-Track Betting.
"The board has started looking at expanding the hotel, certainly predating me," said Brown. "I have been in a number of briefings on the hotel; there are several outside consultants and expert entities who have been hired to help the board evaluate the potential of expanding the hotel. From what I have been able to see and review, it looks like it makes sense to me."
Brown did not disclose any specifics on the proposals the board is reviewing. Wednesday's discussion took place behind closed doors. Brown said the expansion would take place on the current Batavia Downs property. The board has not discussed purchasing additional property he said.
"A lot of questions came up in the executive session that the board went into to discuss the hotel," Brown said. "I thought the questions were right on target, and I think the board will make a sound decision about whether to expand the hotel or not to expand the hotel."
After Kmart closed in 2018, WROTB attempted to purchase the property but lost out to Benderson Development. While Benderson built space and leased it to three franchise operations, the main Kmart building remains vacant. Brown said he has not heard any talk of WROTB attempting again to purchase the property.
The 84-room luxury hotel opened in 2016. It was originally constructed and operated by ADK Hospitality, a Buffalo-based company. It costs ADK $5.4 million to build the hotel. The OTB purchased the hotel in 2021 for $8 million.
The purchase, Brown said, "has led to this corporation becoming a lot more profitable. So purchasing the hotel in the first place was a very good decision. From my perspective, just being able to evaluate this during the week that I've been here, I think expanding would be a good decision as well. But again, I don't want to try to speak for the board."