Downtown mulls uncertain impact of Fairmont downtime

As the Fairmont Winnipeg hotel prepares to close its doors this summer for a months-long renovation project, surrounding businesses say they’re waiting to see what the impact will be on Winnipeg’s downtown.

Any time Palomino Club owner Christian Stringer books an act outside of the province, he’ll set them up at the Fairmont — most recently, DJ Pauly D of Jersey Shore fame — and a chunk of his customer base is out-of-towners staying at the nearby hotel looking for a bit of fun.

“(The Fairmont) has always been the five-star (hotel) for us,” Stringer said Thursday.

He said he’s not sure how much the hotel closing from July until spring of 2027 will affect business. He worries it might complicate bringing in performers from outside of Canada — a practice he’s already had to cut back on as the Canadian dollar has made it harder to meet the asking price of U.S. acts.

But as for the regular tourists, he said, if they’re looking to dance, he thinks they’ll find their way to the Pal no matter where they’re staying. “People like it because it’s across the street from everything, basically … I think (we’re) going to bounce back real quick.”

At Deer + Almond in the downtown core, owner Mandel Hitzer said his restaurant will often serve guests staying at the Fairmont, some coming to Winnipeg with a list of award-winning restaurants to check out.

“I do get a little nervous, being a downtown business coming out of winter, we’re always trying to encourage people to come downtown and support downtown,” he said.

Hitzer said he often recommends other restaurants in the downtown to out-of-town guests and, like Stringer, believes visitors staying at other hotels will go the extra mile to visit the neighbourhood.

“They’re going to keep coming, and if they’re not staying at the Fairmont, they’ll find somewhere else to stay … We’re not living in the Dark Ages, we’re Googling where to eat and where to go and, right now, Winnipeg is on fire,” he said.

The Fairmont numbers 340 of Winnipeg’s 7,350 hotel rooms city-wide — 2,150 of them in the downtown area. It’s the city’s second-largest hotel and accounts for around 15 per cent of all downtown hotel rooms.

“I think there’s probably some expectation, I’ll say, that occupancy will tighten given the amount of rooms (involved),” said Michael Juce, president and CEO of the Manitoba Hotel Association.

However, considering Western Canada’s first Hyatt Centric, a 140-unit boutique hotel being built in former Canada Revenue Agency offices on 325 Broadway, is set to open in the near future, Juce said the city’s hotel industry likely won’t have any problem taking on guests over the next year.

“It’s likely not just downtown, but city-wide, there’ll be some impact, but it’s good we have some new supply coming on board, too,” he said.

The Fairmont renovations, opening of the Hyatt Centric project, and the upcoming opening of the Fort Garry Hotel’s new higher-end suites and executive lounge announced this week all tell a positive story about the growth in Winnipeg’s downtown, Juce said.

“It’s a great signal and sign, and shows that hotels really believe in the future of the city and downtown.”

Thor Richardson, president of Winnipeg-based James Richardson & Sons Ltd., which owns the Fairmont, said this week hotel staff had already been working to make new arrangements for guests or events impacted by the temporary closure.

malak.abas@freepress.mb.ca