By QUINTON SMITH/YachatsNews.com
The three largest motels in Yachats are closing until the coronavirus outbreak subsides, laying off up to 140 employees.
The 54-room Overleaf Lodge and 43-room Fireside Motel closed Saturday after the last of its guests departed.
On Sunday, the 110-room Adobe Motel and Restaurant announced it would close all its operations Monday morning.
Sweet Home vacation rentals, which has offices in Yachats, Waldport and Newport and manages 75 short-term rentals in Lincoln County, announced Sunday afternoon it was suspending all new rentals through the end of April and would extend that if necessary.
The start of Oregon’s spring break is normally signals a busier time of year for coastal motels and restaurants. But those businesses have been pummeled by the coronavirus outbreak and governments banning large gatherings, inside dining and urging people to stay home. As of Sunday, five people have died in Oregon and 161 have tested positive for the virus, including 24 new cases Saturday. In Washington state, there are 1,524 cases, including 83 deaths — the bulk of which are in King County.
There have been no reported cases in Lincoln County, but there’s also been only limited testing.
Local motels that were still open Saturday and Sunday included the Yachats Inn, the Ya-tel, Dublin House, Deane’s Oceanfront Lodge, and the Silver Surf – but had few customers.
Adobe general manager Anthony Muirhead said Sunday that the motel rented 35 rooms Saturday night. Although it was the first weekend of spring break and the weather was nice, that was a surprise, he said, especially after Gov. Kate Brown had asked people to stay home.
“After everybody came to the coast this weekend we didn’t want to be a part of helping this thing spread,” Muirhead said. “It’s hard because the business side of you wants to make money and keep people working, but the health conscious side of you says we shouldn’t help jeopardize people.”
Muirhead said he has laid off the bulk of the Adobe’s 80 employees, keeping only a skeleton crew around to take care of the buildings and property.
That was the same thinking for owners of the Overleaf and Fireside motels.
“We went back and forth on the economics and the decision, but it was more expensive to stay open than close … and we have no idea what’s coming in the next few weeks,” said Drew Roslund, part owner and manager of the two motels. He said bigger, high-end resorts like Salishan near Lincoln City and Sunriver in Central Oregon closed earlier in the week.
Roslund also said he “didn’t feel comfortable jeopardizing our staff” to potential coronavirus exposure as they interacted with the few guests, washed linens and towels and cleaned rooms.
The Overleaf also stopped taking reservations for seven vacation rentals it manages in the adjacent Overleaf Village. It closed the Overleaf spa on Tuesday.
Overleaf managers notified 55-60 full and part-time employees Friday morning of the closure. Some have accrued vacation pay to possibly tide them over, Roslund said. All are eligible for unemployment and any special state or federal programs if and when they are established.
“We’ve been upfront and honest with them,” Roslund said of the motel staff. “We don’t know how long this is going to go on. But we will welcome them all back; we want them all back.”
Roslund said a handful of employees will stay on to keep the properties secure and check rooms daily. They will also tackle some maintenance projects – if they can work without jeopardizing each others’ health.
The sudden and significant drop in motel and restaurant business will likely have a big impact on city of Yachats spending, which relies on transient lodging taxes and a food and beverage tax for much of its short- and long-term operations or projects. Those taxes are collected quarterly – the next payments due April 30 for the months of January, February and March.
Roslund said because of relatively “good” business in January and February, revenues from the Fireside and Overleaf might only be down 15 percent for the first quarter of the year. But April, May and June are another matter.
“I don’t see any scenario now that revenue won’t be down at least 50 percent for the second quarter,” he said.
Unlike many small coastal businesses operated by one owner, Roslund said the two motels have a strong group of investors and money in reserve.
“We’re in a strong position and we can hire everyone back once this end,” he said. “But there’s just been nothing like this.”