Weak Economy Delays Opening of Salamander Resort and Spa in Middleburg

A down economy and weak revenue projections for the luxury hotel industry have again delayed the opening of the long-awaited Salamander Resort and Spa in Middleburg.

The 168-room luxury hotel, being built by Black Entertainment Television co-founder Sheila C. Johnson, was first slated to open next March. Johnson's company said in February that it would delay the hotel's opening to spring 2011 because of poor sales in the hotel industry this year.

The opening date has been pushed again, to between fall 2011 and spring 2012, said Prem Devadas, president of Johnson's company, Salamander Hospitality.

"We made a decision to continue the construction slowdown," Devadas said. "It is really due to projections that this recession will further impact the luxury hospitality market through 2011."

Devadas said the successful opening of the resort is critical to its long-term performance.

"With this luxury level, the expectations of the guests are very high, and if you don't meet that from day one, you risk its future success," he said.

Room rates during the hotel's peak seasons in the spring, summer and fall would be $400 to $600 a night, Devadas said. He said rates would be as low as $250 per night during other times.

Middleburg Mayor Betsy Davis said the town supports the company's decision to postpone the opening.

"I think they are certainly doing the right thing," Davis said. "We want them to open when it's going to be a huge success."

A wastewater treatment plant that Salamander promised to build in exchange for town approval of the project is under construction and scheduled for completion in February, Devadas aid.

Town officials said they hope that revenue from the water and sewer services paid by the hotel will help ease utility costs for Middleburg residents.

"We don't have a huge number of people in town that would be paying" for the system's operation, Vice Mayor Darlene Kirk said. "Our water rates are very high right now, so hopefully when this gets on, maybe that will ease some of that."

Davis, a co-owner of the Fun Shop, a small department store downtown, said she expects the hotel's guests will shop and dine in town.

"They're going to help bring economy to the town" and increase the commercial tax base, she said. "It infuses the town with a little new energy."

Johnson announced plans to build the resort in 2002, prompting a five-year debate over whether it would ruin the character of quiet Middleburg. In 2004, Loudoun County gave Johnson approval to build a 58-room hotel, and the next year the Town Council agreed to adjust Middleburg's boundaries so Salamander could expand to 120 rooms. In 2007, the council granted Salamander an additional 48 rooms.

The hotel's stucco exterior is mostly finished, and the slate-shingled roof is halfway complete, Devadas said.

The building will be entirely enclosed by mid-November, and the exterior of a 22-stall barn in the resort's equestrian facility has been completed, he said.