New investors trying to rebuild resort industry
By RICH NEWMAN
Staff Writer
MONTICELLO--Songcha Gallo, the Korean-born wife of Long Island surgeon Victor Gallo, huddled inside a red overcoat
as she led a tour of the 355-room resort she's renovating on Sullivan County's Swan Lake. The lobby, nearly finished,
boasts a series of crystal chandeliers the size of four-door Hyundais. The centerpiece is a five-ton dragon boat sculpture
of hand-carved jade from China. Price tag: $135,000. Boarded up for six years with a badly leaking roof, the former
Stevensville Hotel, which will be renamed the Swan Lake Resort Hotel, was in rough shape.
In the banquet hall, "the mold was this thick," Mrs. Gallo said, holding her hands several inches apart. The main kitchen
where the roof had collapsed has been completely rebuilt. Last week a worker was acid washing spray-painted graffiti
from walls of the indoor swimming pool.
The Gallos say they've sunk $1.7 million of their own money into the property and they've applied for a $4.5 million
mortgage to finish the job.
"I am not a rich woman," said Mrs. Gallo, almost apologetically.
They recently bought most of the nearly new furniture from the Pines Hotel in South Fallsburg, which failed despite a $5
million renovation two years ago. They bought furniture for 170 hotel rooms and convention seating for 4,000.
The Gallos are among the new investors in the changing Catskill resort industry. Once world-renowned as a luxurious
getaway for Jewish vacationers from New York City, the region is slowly transforming into a more multi-cultural vacation
spot. While the resorts are not abandoning their kosher clientele, many are reaching for new niches in the competitive
resort and travel industry.
The new investors are hoping to recapture the allure of the "place in the country" where Eddie Fisher and Buddy Hackett
once shared a stage at the Tamarack Lodge, where Muhammad Ali trained for legendary bouts with Joe Frazier at the
Concord and where Lou Goldstein led thousands in wacky rounds of "Simon Sez" at Grossinger's.
But the changes are coming after some painful losses. The so-called "Borscht Belt" landmarks like the Browns,
Grossinger's, and The Pines are closed, perhaps for good. And now the biggest of them all, the 1,100-room Concord, will
be sold at auction to pay off more than $20 million in debt. Nevertheless, millions of dollars are being poured into other
resorts by developers hoping to cash in on the area's natural beauty and proximity to New York City.
Finding a Niche
The Nevele Grande near the Ulster County village of Ellenville is in the middle of a $10 million renovation. Since last year
the Nevele has been largely owned by Liberty Travel which is promoting the resort by giving away free stays to its cruise
ship vacationers.
The former Granit Resort in Kerhonkson has also been undergoing a major facelift in recent years and has changed its
name to the Hudson Valley Resort.
"Historically, when you look at the trend over the past 100 years or so (the Catskill hotel industry) has never been lower,"
said Jennifer Brylinski, executive director of the Sullivan County Industrial Development Agency. "It's nice to see that
some have been trying to make a comeback." Even with the major kosher resorts closed or struggling to reach a broader
market, Sullivan County's hotels and motels remain the largest private sector employer.
In 1997, 1,737 people were employed in its hotels and motels, a number virtually unchanged from 1996. According to the
state Department of Labor, only elementary and secondary schools, combined, provided more jobs. Sales tax revenues
from hotels and motels in Sullivan County in March through August were up slightly this year to $35.2 million from $34.9
million.
The Villa Roma, out by the Delaware River in Callicoon, though not a traditional Borscht Belt resort, has continued to
thrive. "It is an excellent example of a resort that has changed with the times," said Sullivan County Manager Jon Drapkin.
People said they wanted larger rooms, so the hotel has been refurbishing them on an ongoing basis, making two rooms for
every three. The Villa Roma has also added time-share apartments and condominiums to its mix.
"The conversion of The Browns resort by a condominium developer several years ago has also been a success," said
Drapkin. About three-quarters of the 375 rooms have sold over the past three years. The majority of the buyers have
been "snow birds" who live in Florida during the winter and vacationers from Canada.
Meanwhile the family-owned Concord, the Raleigh and Kutsher's are seen as the last of an old breed, fighting among
themselves for business from convention groups and mid-week senior bus groups by offering deep discounts.