Hotel revived

THE ISSUE

A federal judge has awarded management of the Sheffield Holiday Inn to a new company, which offers hope that the inn will regain its good reputation.

The Holiday Inn in Sheffield is under new management.

A federal judge last week awarded management to Prism Hotels and Resorts, approving an arrangement worked out between Wells Fargo Bank, which owns the hotel's long-term lease, and the city of Sheffield, which owns the building and property. The hotel had been managed by Sheffield Portfolio, a subsidiary of Kronos, but the company has been late paying its bills to the city and to the state. Employee paychecks also dried up, prompting a number of workers to resign and find other work.

Kronos, doing business as Sheffield Portfolio, acquired the Holiday Inn's lease in June 2007. The management has failed to pay utilities bills in a timely manner, prompting Sheffield officials to turn off power. The company has also failed to pay a variety of taxes, which lead to the state Alcoholic Beverage Control Board suspending the hotel's liquor license.

In short, this has not been a good year for the Holiday Inn.

But the new management company appears to be pleased with the property and is working with state and city officials to clear outstanding debts. A Prism spokesman described the staff at the Holiday Inn as "delightful."

It appears that Prism is the right company for the job of managing what, until recently, has been a successful hotel. The Holiday Inn is a highly recognized name that attracts travelers worldwide because of its reputation for a certain standard of quality and service. The hotel also is a vital source of lodging taxes for Colbert County's tourism office, as well as sales taxes for Sheffield.

We believe the Holiday Inn will soon be on stable financial ground.