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Independent Report Projects Optimism for Upcoming Year at Honey Creek Resort
Posted: January 11, 2010

DES MOINES - A state audit released today of Honey Creek Resort State Park has confirmed the findings of a recent independent study of the operation.

The private hospitality consulting firm WKC Group submitted its report (which can be viewed at: http://www.iowadnr.gov/files/hcreport.pdf) in December to the Iowa Department of Natural Resources (DNR) and to Central Group Companies, Inc., which manages the resort. WKC Group's report notes the resort has been well-managed, serving more than 157,000 visitors in its first 10 months. The resort has generated $3.1 million in revenues, despite a weather-delayed opening and the worst economic times since the Great Depression.

"The auditor's report confirms we are getting an accurate accounting of Honey Creek's financial status and the fact that the company lost money in the first year of operation is not a surprise regardless of the economic conditions. Visitors are paying the resort the ultimate compliment by coming back," said Pat Boddy, deputy director of the DNR.

The auditor's report reflected an operating loss of $884,000 in the first fiscal year of operation ending June 30, 2009. "The first quarter of FY 2009/2010 has a number of positive financial indicators," according to the conclusions of the WKC study.

The DNR has been working with Central Group to address financial issues, including a comprehensive review of how to reduce expenses, Boddy said.

"Considering this is a resort that is building a customer base from scratch during the most difficult economic times experienced in the last 60 years for the hospitality industry, Honey Creek is performing quite well and we have some very reasonable reasons for being optimistic about the future of this facility," said Central Group CEO Robert Pace.

Pace pointed to Honey Creek outpacing its competition in terms of occupancy when compared to other similar resorts according to the independent Smith Research Company, a highly-regarded hospitality research firm.

"The bottom line is that Honey Creek is continuing to gain numbers. Public response to the cottages that opened at the resort last summer has been phenomenal and the national publicity the golf course received this winter will certainly fuel additional gains in golf this spring," said Pace.

Plans continue for Honey Creek's future. In partnership with Iowa State engineering students, the ISU Interlock House will open this spring as a nature center, a new beach will be installed, and the boat ramp will be fully on-line by May.