Historic Stroudsburg hotel in line for $3M renovation

A $3 million plan to renovate an historic hotel on a key corner in downtown Stroudsburg has received a boost from the state Department of Community & Economic Development.

In February, Bhavi Corp. bought Pocono Inne Town hotel, formerly the Penn Stroud Hotel, an 88-room, 74,070-square-foot hotel that was built in the 1800s, with the intent to renovate the property.

Bhavi Corp.’s Keyur Patel said when engineering work was conducted on the structure, it became apparent that the renovation work would be much more expensive than originally estimated.

“We wanted to whittle the cost down a little, sharpen the pencil,” Patel said. “So we looked for help from the state.”

Through Pocono Mountains Industries Inc., the DCED awarded the firm a $400,000, 15-year low-interest loan to help with the roughly $2.94 million cost of the renovation.

Dennis Noonan, economic development specialist for the Pocono economic development agency, said while this first assistance is small, his agency is seeking additional funds, including funding from Building Pa., another state low-interest loan fund that targets small- to medium-sized communities.

In total, he hopes to acquire around $1.8 million in funding assistance for the project.

“[Renovating this hotel] is central to downtown Stroudsburg,” Noonan said. “It’s been there for over 100 years on a prominent corner. It will be a huge piece of our revitalization efforts.”

Patel said the hotel, which has remained open despite deteriorating over the years, will be returned to its original splendor and reputation.

It also will return to its best-known name, Penn Stroud Hotel.

The hotel has been known as everything from the Fulmer Hotel to its current Pocono Inne Town and has been under the banner of the Hilton and Best Western chains over the years. Patel said he surveyed longtime members of the community and found that the name Penn Stroud Hotel still resonates with them.

Construction will begin on the façade in January.

Patel noted that the property falls in the historic district of the borough. Façade plans went before the Historical Review Board, and changes were made from his original more modern concept to a more historic look.

“It will look completely different. It will still have some modern touches, but it will fit in with the community,” he said.

Patel said architectural plans are being drawn for interior renovations. They will include all spaces from individual rooms to the lobby and hallways, again with an eye to restoring the hotel’s historic feel.

Ultimately, Patel said, he hopes the project is a job creator. He said that when he took over the property, it was not doing well – and fewer guests meant a skeleton staff.

“We want it to be a busier hotel, and with that we will hire more full-time employees,” Patel said. In his application with the state, he said he expected to hire 14 and retain 12 employees as a result of the renovation.

Noonan said area economic development officials are happy to see Bhavi Corp. take on the project.

“Unfortunately, the property has been allowed to deteriorate, but these folks are coming in with the necessary skills and financing to bring it back to its former prominence,” Noonan said.

Source: LVB