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High hopes for fresh start at Iowa resort

Honey Creek Resort has new management

High hopes for fresh start at Iowa resort

Honey Creek Resort has new management

8 NEWS AT SIX. THE SUMMER SEASON IS JUST GETTING STARTED HERE AT HONEY CREEK RESORT IN SOUTHERN IOWA. IT’S THE ONLY RESORT OWNED BY THE STATE AND EFFECTIVE TODAY, THERE’S A BIG CHANGE. A NEW COMPANY IS TAKING OVER MANAGEMENT OF THE COMPLEX, WHICH INCLUDES A HOTEL, RESTAURANT AND GOLF COURSE. HONEY CREEK HAS HAD FINANCIAL TROUBLES IN THE PAST. NEW AT SIX. WE ARE LOOKING AT WHAT THIS NEW COMPANY IS PROMISING TO DO TO TURN IT AROUND. NESTLED ALONG THE SHORES OF RAPID LAKE IN APPANOOSE COUNTY, HONEY CREEK RESORT IS A TOURISM OASIS FOR SOUTHERN IOWA, A PLACE THAT BRINGS VISITORS TO NEARBY CENTERVILLE. THAT’S A GREAT SPOT, AND I THINK IT CREATES A LOT OF OPPORTUNITY FOR OUR COMMUNITY AS WELL AS SURROUNDING COMMUNITIES. BUT SINCE IT OPENED IN 2008, HONEY CREEK HAS STRUGGLED. AN AUDIT SHOWS THAT IN 2020, JUST UNDER 30% OF THE RESORT’S ROOMS WERE FULL. THAT WAS DURING THE HEIGHT OF THE PANDEMIC, WHEN MANY HOTELS STRUGGLED. BUT EVEN BEFORE THAT, IN 2019, VISITORS ONLY FILLED ABOUT 46% OF HONEY CREEK’S ROOMS FOR THE YEAR. THE AUDIT SHOWS HONEY CREEK’S TOTAL REVENUE DROPPED FROM ABOUT $5.9 MILLION IN 2019 TO LESS THAN $4 MILLION IN 2020. EARLY LAST YEAR, THE DEPARTMENT OF NATURAL RESOURCES ANNOUNCED VENUE MANAGEMENT COMPANY DELAWARE NORTH NO LONGER WANTED TO CONTROL HONEY CREEK, CREATING UNCERTAINTY AROUND THE RESORT’S FUTURE. HONESTLY, I THINK IT WAS JUST MANAGEMENT, POOR AND POOR MANAGEMENT. PREVIOUSLY, WE JUST KIND OF QUIT GOING BECAUSE IT WASN’T RELIABLE. ACHUBA ENTERPRISES IS THE NEW COMPANY IN CHARGE OF HONEY CREEK. IN ITS CONTRACT WITH THE DNR ACHIEVER WILL SPEND UP TO $6.8 MILLION IN STATE MONEY TO MAKE IMPROVEMENTS TO THE PROPERTY. THE COMPANY ALSO AGREED TO SPEND MORE THAN $1.6 MILLION OF ITS OWN MONEY TO BUILD NEW ATTRACTIONS AND TO UPDATE EXISTING ONES. PEOPLE IN APPANOOSE COUNTY HOPE THAT INFUSION OF CASH WILL BE THE ANSWER FOR HONEY CREEK. WE’RE EXCITED. I’M EXCITED TO SEE WHAT HAPPENS. IN A NEWS RELEASE LAST MONTH, THE DNR SAID ACHIEVING ENTERPRISES HAS TIES TO SOUTHERN IOWA AND WAS AWARDED A CONTRACT THROUGH A COMPETITIVE BID PROCESS. KC
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High hopes for fresh start at Iowa resort

Honey Creek Resort has new management

The summer season is just getting started at Honey Creek Resort in Appanoose County. The only state-owned resort in Iowa is starting the season under new management.Effective Friday, April 14, Achieva Enterprises has taken over operations of Honey Creek, which includes a hotel, restaurant, golf course and more. In March, the Iowa Department of Natural Resources announced the company, which has ties to southern Iowa, was awarded the contract through a competitive bid process.The resort, on the shores of Rathbun Lake north of Centerville, has had financial troubles in the past. An audit found that in 2020, the resort's hotel rooms averaged just below 30 percent occupancy. That was during the height of the pandemic when many hotels were struggling. But even before that, in 2019, visitors only filled about 46 percent of Honey Creek's rooms throughout the year.The same audit revealed that Honey Creek's total revenue dropped from about $5.9 million in 2019 to less than $4 million in 2020.In 2022, the DNR announced venue management company Delaware North no longer wanted control over Honey Creek. That created uncertainty for more than a year, until March of 2023, when the DNR announced Achieva Enterprises would take over management.KCCI obtained the DNR's contract with Achieva Enterprises. The company has agreed to spend up to $6.8 million in state money to make improvements as well as $1.6 million of its own money to build new attractions and update existing ones.People in Centerville told KCCI they hope that cash will be the answer for Honey Creek."We're excited, I'm excited to see what happens," business owner Jennifer Elliott said."I think it creates a lot of opportunity for our community as well as surrounding communities," Centerville resident Elizabeth Sells said.KCCI contacted Achieva Enterprises for comment, but did not hear back.

The summer season is just getting started at Honey Creek Resort in Appanoose County. The only state-owned resort in Iowa is starting the season under new management.

Effective Friday, April 14, Achieva Enterprises has taken over operations of Honey Creek, which includes a hotel, restaurant, golf course and more. In March, the Iowa Department of Natural Resources announced the company, which has ties to southern Iowa, was awarded the contract through a competitive bid process.

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The resort, on the shores of Rathbun Lake north of Centerville, has had financial troubles in the past.

An audit found that in 2020, the resort's hotel rooms averaged just below 30 percent occupancy. That was during the height of the pandemic when many hotels were struggling. But even before that, in 2019, visitors only filled about 46 percent of Honey Creek's rooms throughout the year.

The same audit revealed that Honey Creek's total revenue dropped from about $5.9 million in 2019 to less than $4 million in 2020.

In 2022, the DNR announced venue management company Delaware North no longer wanted control over Honey Creek. That created uncertainty for more than a year, until March of 2023, when the DNR announced Achieva Enterprises would take over management.

KCCI obtained the DNR's contract with Achieva Enterprises. The company has agreed to spend up to $6.8 million in state money to make improvements as well as $1.6 million of its own money to build new attractions and update existing ones.

People in Centerville told KCCI they hope that cash will be the answer for Honey Creek.

"We're excited, I'm excited to see what happens," business owner Jennifer Elliott said.

"I think it creates a lot of opportunity for our community as well as surrounding communities," Centerville resident Elizabeth Sells said.

KCCI contacted Achieva Enterprises for comment, but did not hear back.