RFEI.X001524.SaratogaSpa.GideonPutnamHotel.Spa&HistoricFacilities.Supplement1.pdf

REQUEST FOR EXPRESSIONS OF INTEREST X001524

OPERATION AND REHABILITATION OF HISTORIC FACILITIES AT SARATOGA SPA STATE

PARK:

THE GIDEON PUTNAM HOTEL & CONFERENCE CENTER, ROOSEVELT I BATHS & SPA,

ROOSEVELT II BATHHOUSE, AND/OR

WASHINGTON BATHHOUSE

SARATOGA SPRINGS, NEW YORK

SUPPLEMENT 1

MARKET ANALYSIS AND COMPATIBLE USE STUDY

Gideon Putnam Hotel and Roosevelt Spa

Market Analysis and Compatible Use Study June 2025 www.camoinassociates.com

PREPARED FOR:

NYS Office of Parks, Recreation and Historic Preservation

19 Roosevelt Drive

Saratoga Springs, NY 12866

DRAFT

Gideon Putnam Hotel & Roosevelt Spa Compatible Use Study

CONTENTS

Executive Summary

Introduction

Property Overview

A: Lodging Market Analysis

B. Compatible Use Analysis

1. Event Use

2. Commercial Use

3. Residential Use

4. State Agency Use

Attachment A: Hotel Inventory For Saratoga Springs

Attachment B: Spa State Park Attendance

Attachment C: Economic & Demographic Profile

Attachment D: Retail Leakage Analysis

Attachment E: Data Sources

EXECUTIVE SUMMARY

The Gideon Putnam Hotel and Roosevelt Baths and Spa, located within the historic Saratoga Spa State Park, represents two of the region’s most iconic and culturally significant assets in Saratoga Springs. With its 1930s architecture, access to mineral springs, and proximity to a host of cultural and recreational attractions, the hotel and spa remain a cherished part of

Saratoga’s tourism identity. However, like many historic properties, the

Gideon Putnam faces considerable challenges amid shifting market dynamics, changing traveler preferences, and mounting infrastructure needs.

This market analysis and compatible use study, commissioned by the New

York State Office of Parks, Recreation, and Historical Preservation (OPRHP), evaluates the property’s operational performance, regional market dynamics, and viable repositioning strategies to support long-term sustainability of the Gideon Putnam Hotel and Roosevelt Baths and Spa.

The study draws from quantitative market data, regional tourism and lodging trends, financial performance, stakeholder interviews, and competitor analysis to build a data-backed case for reinvestment and repositioning.

Despite its historic appeal and strong brand recognition, the Gideon

Putnam faces substantial operational challenges, including aging infrastructure, seasonal closures, shifting traveler accommodation preferences, and increasing competition from modern hotels and short-term rentals. While the hotel maintains a premium average daily rate (ADR) and occupies a unique niche within the market, its occupancy rate remains below the regional averages, signaling underutilization of a valuable tourism asset.

Assessment Compatibility Key Findings

Strong market demand, over 450,000 hotel nights in

Saratoga County in 2024

Strong and unique market positioning, but needs complementary uses to reach occupancy goals

Strong local wedding industry that hosts approx.

1,100 weddings annually

Gideon Putnam competitively positioned for event venue given unique location and characteristics

Strong local demand with between 700-1,000 business events annually

Need to capture over 41% of market share

Site could yield 89-102 units

Market absorption feasible

Demand supported by rising rents and income

Site could yield 192-340 units

Demand exists but ROI is lower

Ideal for service-sector workers, seasonal workers

Onsite restaurant viable with destination dining concept

Requires branding, programming, and quality service

Insufficient residential base

Seasonal visitation makes consistent operations challenging

Lack of foot traffic and visibility

Not supported by location or demand patterns

Childcare Limited Not supported by park demand base

Early Childhood

Education Moderate

Compatible with portion of the property footprint

Requires close consideration of complementary uses

Compatible with upper floors, 350-680 staff capacity

Faces challenges in public perception

Strong regional need

Space adaptable for 113-146 classrooms to support agency collaboration

Low numbers for seasonal staff housing within the

Park and Partners

Efficiency-style housing not support by demand, but suitable for portion of property

Hotel Use

Traditional Hotel Moderate to High

Summary of Compatibility Findings

Fitness/Recreation Limited

Event Use

Commercial Use

Residential Use

Moderate to High

Moderate to High Market Rate

Apartments

Moderate to High Workforce

Housing

Wedding-Focused Moderate to High

Business Group-

Focused Moderate to High

Restaurant

LimitedRetail

State/Partner

Worker Housing Limited

Training and

Educational Space Moderate

State Agency Use

Office Space Moderate

Lodging Market Context and Growth Potential

The Saratoga Springs lodging market is resilient and robust, marked by a high level of seasonal demand and a consistent trend of increasing average daily rates. While overall occupancy remains slightly below its pre-pandemic peak, the market is on track to continue its recovery. The report identifies several positive indicators for repositioning and investing in the

Gideon Putnam.

Room-Night Demand Growth: In 2024, Saratoga Springs sold over

451,000 hotel room nights, generating nearly $100 million in room revenue. Market occupancy stabilized at 65%—a strong indicator of healthy, sustained demand.

Average Daily Rate Strength: Saratoga’s hotel average daily rate (ADR) peaked at $272 in summer 2024, and year-round ADR continues to trend upward at a rate of approximately 2–3% annually.

Cultural and Recreational Drivers: Visitation to SPAC has grown steadily, reaching 475,000 annually. Additional demand stems from year-round attractions within the park such as the Saratoga Automobile Museum, the

Hall of Springs, and the Roosevelt Baths & Spa. Outside the park, demand is driven by nearby attractions such as the Saratoga Race Course and

Saratoga Casino. Seasonal peaks from the Saratoga Race Course, SPAC, and major festivals are complemented by steady off-season visitation to museums, the spa, and the state park.

All Demand Segments Trending Positive: Across leisure, wellness, business retreat, and group celebration segments, demand remains steady or growing. Saratoga’s mix of outdoor recreation, cultural heritage, and live events supports a broad appeal that is well-matched to the Gideon

Putnam’s asset profile.

Limited Competition in Historic Segment: The Gideon Putnam is the largest remaining full-service historic hotel in the Saratoga area. Its closest competitors—Saratoga Arms, the Adelphi, and the Inn at Saratoga—offer smaller footprints and limited event space, positioning the Gideon uniquely to host retreats, weddings, and cultural travelers.

High Spa Utilization: The Roosevelt Baths and Spa, while modest in revenue growth, has maintained consistent performance and an outsized share of total revenue (30% in 2024). Local residents account for a large portion of usage, with minimal crossover from hotel guests—highlighting the need for clearer branding and operational separation.

Price Premium: Despite service challenges, the hotel has maintained premium ADRs, signaling strong brand equity and the potential to command higher rates with improved service and product quality.

Despite these strengths, the Gideon Putnam has struggled to capitalize on this opportunity. Infrastructure limitations and outdated guest amenities have led to limited seasonal operation, which has weakened its market capture and revenue performance relative to its peers.

Challenges to Overcome

The Gideon Putnam’s competitive position is undermined by both internal limitations and broader industry headwinds. The analysis identifies five main categories of challenge:

Operational Underperformance: In 2024, the Gideon Putnam’s occupancy was 58% (after adjusting for seasonal operations)—below the

65% market average—despite charging significantly higher room rates

(ADR of $302 vs. $170 market average). This discrepancy highlights a perception of poor value among guests, which is echoed in reviews citing dated rooms, maintenance issues, and limited services.

Seasonal Closure and Infrastructure Strain: Seasonal operation (closed

November–March) and aging infrastructure, including HVAC and plumbing, have led to diminished guest experience and mounting maintenance costs. Flooding in 2018 and reduced service levels post-

COVID further eroded its reliability as a high-end destination.

Changing Travel Preferences: The rise of remote work and virtual meetings has permanently altered business travel patterns. While conference attendance and retreats are rebounding, traditional business stays are declining. The Gideon Putnam must pivot toward wellness-focused and hybrid business/leisure offerings to remain relevant.

Short-Term Rental (STR) Competition: Airbnb and Vrbo listings have grown 33% over the past two years in Saratoga Springs, adding the equivalent of 500 hotel rooms. While STRs show lower occupancy (42%) compared to hotels (65%), they deliver higher RevPAR and more flexible accommodation—particularly appealing to families, groups, and extended-stay guests.

Location Misperceptions: While the park setting offers peace, access to trails, and proximity to SPAC, some travelers perceive the location as isolated or inconvenient, especially compared to downtown hotels with walkable dining and entertainment.

Strategic Recommendations for Hotel Repositioning

Based on the findings, the following recommendations are made to reposition the Gideon Putnam Hotel and Roosevelt Spa to align it with evolving market trends in the lodging industry:

1. Embrace Identity as a Heritage and Wellness Destination

The future success of the Gideon Putnam Hotel will depend not only on physical upgrades but also on a bold reframing of its identity in the

Saratoga Springs market. The hotel’s location within Saratoga Spa State

Park is its defining characteristic, offering both advantages and constraints that must shape its future strategy. Rather than attempting to compete directly with downtown and Route 9 hotels on accessibility or general convenience, the Gideon Putnam should fully embrace a differentiated positioning centered around its two greatest assets: history and wellness.

It is important to begin with a clear-eyed recognition of the hotel’s disadvantages:

◼ Distance from Downtown Core: At roughly 2.5 miles from the heart of Saratoga Springs and primary attractions like the racetrack and casino, the hotel is less accessible for visitors prioritizing nightlife, walkable restaurants, or proximity to shopping.

◼ Low Visibility and Drive-By Appeal: Tucked inside a wooded state park, the Gideon Putnam lacks the high street visibility and spontaneous walk-in traffic that benefit downtown properties.

◼ Aging Infrastructure: Years of deferred maintenance and a dated guest experience currently limit the hotel’s ability to meet the expectations of modern leisure and business travelers.

However, these constraints—distance, seclusion, and historic limitations— can be strategically reframed as distinctive strengths. One opportunity for the Gideon Putnam is to reposition facility administration for federal and state Historical Preservation tax credits by leveraging its historical status.

These incentives can help fund rehabilitation and feasibility of needed renovations that the hotel and OPRHP may be unable to finance independently.

Rather than marketing the Gideon Putnam as a general-purpose hotel in competition with downtown Saratoga properties, it is better positioned to excel by aligning with two distinct but complementary niches: wellness retreats and cultural and heritage experiences. These categories capture the core motivations of the hotel’s most promising visitor segments, as identified through interviews, market data, and guest behavior patterns.

Each niche overlaps with several of the five high-potential customer profiles identified in this study:

◼ The Timeless Explorer: Cultural and heritage tourists seeking immersive, historically grounded stays.

◼ The Cultured Weekender: SPAC and festival attendees looking for elegance and walkable access.

◼ The Nature-Inspired Weekender: Wellness and recreation seekers valuing trail access, spa services, and park experiences.

◼ The Connected Professional: Small corporate groups and retreats prioritizing natural settings and cultural after-hours options.

◼ The Celebration Seeker: Weddings, reunions, and milestone events that require picturesque venues, group lodging, and spa amenities.

Together, these two niches—Wellness and Heritage/Culture—offer a clear framework for investment, branding, and programming. They also reflect the kinds of experiences that short-term rentals and chain hotels cannot easily replicate. By rooting its identity in these two authentic themes and aligning its operations with the needs of these guest types, the Gideon

Putnam can transform its current constraints into defining strengths.

2. Renovate and Modernize Guest Rooms

The guest rooms are at the heart of the Gideon Putnam experience—and currently, they are the hotel's greatest vulnerability. Guest feedback consistently highlights dated furnishings, small or awkward room layouts, underperforming HVAC systems, and a lack of modern amenities as major detractors from the overall stay. These issues are particularly damaging given the hotel’s relatively high average daily rate (ADR) of $302, which sets high expectations for comfort, design, and service.

To restore market competitiveness and improve guest satisfaction, a comprehensive renovation of all 124 rooms is essential. This should include:

◼ Infrastructure upgrades: Replace aging HVAC and plumbing systems to eliminate drafty rooms, musty smells, and inconsistent water or temperature control. Soundproofing improvements should also be prioritized.

◼ Modern guest amenities: Introduce smart TVs, fast and reliable

Wi-Fi, updated lighting, in-room workspaces, luxury linens, and spa-inspired bathrooms to meet current expectations.

◼ Historic character preservation: Design should retain and celebrate the 1930s-era architectural charm, incorporating period-inspired finishes and materials that honor the hotel’s legacy while improving function and comfort.

◼ Accessibility improvements: Ensure compliance with ADA standards and increase room variety to accommodate guests with mobility and sensory needs.

Renovation should be viewed not only as a necessary capital improvement but as a brand-defining transformation—laying the groundwork for the hotel’s repositioning as a high-end wellness and heritage destination.

3. Reimagine Putnam’s Restaurant as a Destination

Dining is often a key differentiator in the hotel guest experience, and currently, the Gideon Putnam’s restaurant underperforms. Online reviews point to limited hours, inconsistent quality, and a lack of energy or identity.

With only one on-site dining option and no walkable alternatives within the park, the restaurant has a critical role to play in shaping guest perception of value and hospitality. A reinvigorated restaurant at the property should:

◼ Embrace local flavor and story: Use regionally sourced ingredients and seasonally rotating menus to reflect the agricultural richness and culinary traditions of the Capital Region.

◼ Create a destination ambiance: Design a restaurant space that feels intentional and inviting—whether rustic-chic, vintage elegance, or wellness-oriented sophistication. The space should appeal equally to hotel guests and outside diners.

◼ Support programming and events: Allow for special menus tied to SPAC performances, brunch for weddings, and offerings that complement wellness retreat themes. Themed dinners, wine tastings, and seasonal pop-ups can also help attract new audiences.

The restaurant should be marketed as a standalone asset: not just a place to eat during a hotel stay, but a reason to come to the hotel in the first place.

4. Strengthen Cross-Marketing with Cultural and

Community Partners

The Gideon Putnam’s location within Saratoga Spa State Park is not only scenic but also culturally rich. Nearby institutions like the Saratoga

Performing Arts Center (SPAC), the Hall of Springs, the Saratoga

Automobile Museum, and the Children’s Museum offer world-class programming within walking distance. Yet these assets are underleveraged in the hotel’s current marketing and programming strategy.

To drive occupancy and elevate guest experience, the hotel should pursue stronger partnerships with these institutions to create curated cultural getaways. Strategies might include:

◼ Themed guest packages: Offer bundled experiences that pair overnight stays with tickets to nearby performances, museum access, or seasonal events, allowing guests to enjoy a seamless cultural escape without having to plan each element separately.

◼ Seasonal campaigns: Promote shoulder-season stays around indoor exhibits, holiday concerts, or museum events to offset winter occupancy declines.

◼ On-site cultural programming: Host artist talks, small concerts, or gallery pop-ups within the hotel during peak cultural weekends.

◼ Enhance shuttle services and concierge partnerships: Make it seamless for guests to attend events without a car, further positioning the hotel as a low-stress, high-style base for cultural travelers.

◼ Encourage hotel stays by SPAC performers: Host performers, conductors, or artists from SPAC at the hotel, creating opportunities for exclusive guest events, meet-and-greets, or intimate post-show experiences that make the Gideon Putnam a cultural destination in its own right.

In combination with the hotel’s historic identity, this strategy reinforces the

Gideon Putnam as not just a place to stay, but a gateway to culture in

Saratoga Springs.

5. Operationally Separate the Spa from the Hotel

The Roosevelt Baths & Spa is a beloved and historic wellness destination, one with its own clientele and identity distinct from the Gideon Putnam

Hotel. Currently, both operations are bundled under a shared brand and management structure, but this approach creates limitations for both sides of the business. Given differences in user base, experience expectations, and even physical location, there is a strong case for operational and brand separation between the hotel and the spa.

One of the most immediate factors supporting this shift is physical distance. The spa is located approximately a half mile—or an 11-minute walk—from the hotel. While the walk is scenic and safe, it can be a deterrent for some hotel guests expecting spa access to be integrated into their lodging experience. Likewise, the location reinforces what the data and interviews already suggest: most spa visitors are not hotel guests, and most hotel guests do not use the spa. The two operate in proximity, but not in tandem.

Decoupling would clarify this reality for guests and create space for each to better serve its core audience. Benefits of separation include:

◼ Tailored Operations: Each business can optimize independently—whether in staffing models, service hours, pricing, or customer experience. The spa can cater more directly to locals and wellness tourists without being tethered to hotel logistics or seasonality.

◼ Stronger Brand Identity: The Roosevelt Baths can elevate its presence as a premier day spa and regional wellness destination, not just a hotel amenity. With separate marketing, it can tap into local health-conscious demographics, wellness influencers, and off-season traffic.

◼ Improved Financial Clarity: Unbundling the businesses will provide clearer performance metrics, allowing for more informed investment decisions and the potential for distinct capital planning or partnerships.

◼ Enhanced Guest Experience: By setting more accurate expectations up front, guests will avoid frustration over distance, limited bundled offerings, or scheduling mismatches. Cross-promotions can still be offered, but as add-ons rather than implied inclusions.

This separation does not mean a loss of collaboration. Rather, it invites a

“connected but independent” model with curated packages, referral programs, and optional bundles continuing to link the experiences for guests who seek both. The hotel may still market the spa as a nearby attraction, and the spa can offer promotions for overnight stays during retreats or special events.

Financial Feasibility: A Key Question

While the market case for revitalization is strong, the scale of investment required necessitates a rigorous financial feasibility study. Modeling conducted for this report shows that, with renovations completed and year-round operation resumed by 2031:

◼ Revenue per available room (RevPAR) could rise from $174 (2024) to $203 (2031)

◼ Annual revenue could increase from $4.2 million to $9.2 million

◼ Market capture would nearly double from 3.4% to 6% of total room nights in Saratoga Springs

The Gideon Putnam has a strong built-in demand base from visitors to

Saratoga Spa State Park and its surrounding attractions. If the hotel were able to capture just 15% of out-of-region visitors to these sites, it could realistically achieve an occupancy rate of 65%.

While this growth trajectory appears attainable, it must be weighed against renovation costs, ongoing maintenance, and staffing challenges.

The Gideon Putnam and Roosevelt Spa hold a rare and compelling position in Saratoga Springs’ hospitality landscape. With strong demand drivers, a unique setting, and a distinguished history, the hotel has the potential to become a marquee destination for today’s experience-focused travelers. However, that potential cannot be realized without bold investment and strategic reinvention.

After confirming that continued operations as a hotel is the preferred option among other potential compatible uses, the next step is to conduct a full feasibility and phasing study that outlines specific renovation costs, potential financing mechanisms, and a detailed return-on-investment forecast.

Compatibility of Alternative Uses

In evaluating future options for the Gideon Putnam Hotel, this analysis considered not only the potential for continued operation as a hospitality venue but also a broader range of compatible adaptive reuse opportunities. These include event space, restaurant and other commercial uses, residential units, and potential state agency use. The goal is to determine how the site can evolve into a resilient, year-round destination that balances financial viability with its historic and public-facing mission.

No single use, on its own, is likely to generate sufficient revenue or activity to support the long-term operations of the property—particularly given seasonal demand fluctuations, infrastructure needs, and the site's somewhat secluded location within Saratoga Spa State Park. Instead, the greatest opportunity lies in a diversified, mixed-use model, where multiple compatible uses operate in tandem and reinforce one another.

For example:

◼ Events can draw steady group demand, particularly for weddings and business functions.

◼ Hotel accommodations can serve both transient visitors and event attendees.

◼ A repositioned restaurant could emerge as a destination dining experience tied to the park’s cultural and wellness offerings.

◼ Residential uses, including both workforce and market-rate apartments, can help activate the site year-round and address regional housing needs.

◼ State agency uses, such as training or office space, could offer stable tenancy and reinforce the park’s public-serving role, particularly if integrated sensitively with hospitality and community-facing functions.

While each use presents its own opportunities and challenges, their value increases substantially when considered as part of a complementary system. Events drive lodging demand; hotel guests and residents support the restaurant; and public-facing uses, such as training or wellness programming, enhance both visibility and mission alignment. The goal is not simply to fill space, but to create an interdependent, self-reinforcing environment that can sustain operations throughout the year.

This section examines the market viability and functional compatibility of each individual use type. It then concludes with a discussion of potential combinations of uses that—when strategically integrated—could support a sustainable and mission-aligned future for the Gideon Putnam.

Note that this analysis assumes operational separation between the

Gideon Putnam Hotel and the Roosevelt Baths and Spa. Only the Gideon

Putnam Hotel structure was considered for adaptive reuse.

Event Space Use

Overall, there is a moderate to high market potential for the property as an event space use at the Gideon Putnam Hotel. Key market findings that indicate anticipated market compatibility include:

◼ Scenic, historic, and attractive setting

◼ Strong regional event market, including weddings and business events

◼ Strong occupancy levels and rental rate metrics

◼ Established infrastructure

◼ Proximity to demand drivers

The hotel’s location with Saratoga Spa State Park and historic appeal positively impact the property’s potential. The hotel has a long-standing track record of hosting weddings, annual meetings, and social gatherings, and it is well-positioned to serve the strong and diverse group event market in Saratoga Springs.

With flexible conference facilities, on-site lodging, and proximity to major regional attractions, the Gideon Putnam can continue to operate as a premier destination for weddings and business events. While achieving target occupancy through events alone would require a significant market share, the demand exists, and strategic investments in off-season programming, marketing, and service enhancements could make this model viable long-term.

Based on market research, including data analysis and interviews, the following event market opportunities exist for the Gideon Putnam:

weddings, social gatherings, and business events. Key factors affecting feasibility include on-site accommodations and food and beverage options. The market opportunities in Saratoga Springs comes from the

700-1,000 large group business events held annually and over 1,100 weddings held in Saratoga County. To reach the target occupancy rate of

65% and assuming no non-group, transient guests, the hotel would have to capture about 400 group events. This would represent 41% of the business event market, 29% of the wedding market., or a combination thereof.

These market share targets are highly ambitious and not attainable under current market conditions given the many competing venues in the area.

However, the viability of an event-driven model could improve significantly with targeted investments in infrastructure, service quality, and marketing—particularly those aimed at bolstering off-season demand and strengthening the hotel's positioning within a competitive regional market.

Key challenges remain, including the need to capture a substantial share of a saturated event market, address seasonal fluctuations, and overcome the limitations of aging infrastructure. Additionally, the property must differentiate itself through enhanced amenities and a compelling brand identity. Without these improvements—and in the absence of complementary uses to support baseline occupancy—the hotel is unlikely to succeed by relying on group bookings alone.

Commercial Use

The commercial use potential of the Gideon Putnam Hotel is varied, with some clear opportunities and others that are much more limited by the property’s location, seasonal patterns, and lack of a stable on-site customer base. Among the options analyzed—restaurant, retail, fitness/recreation, and childcare—the restaurant stands out as the most viable and impactful component within a larger mixed-use strategy, having moderate to high potential overall. The others face significant barriers to success unless paired with broader changes to the site’s use and activity levels.

The hotel’s existing restaurant, Putnam’s Restaurant and Bar, is currently operated as a seasonal amenity for hotel guests and event attendees.

However, it has consistently underperformed expectations and failed to establish itself as a standalone attraction. Despite this, Putnam’s has strong potential to become a much more powerful commercial anchor for the property if it is repositioned as a year-round destination dining experience.

By embracing the park’s unique identity and leveraging its setting, the restaurant could serve not only hotel guests but also park visitors, Saratoga locals, and tourists seeking something memorable and distinct.

A reimagined Putnam’s could incorporate wellness and heritage-focused programming—such as seasonal tasting menus built around local farms and regional traditions, collaborative events with guest chefs, and curated dining experiences tied to park activities like hikes, spa treatments, or concerts. The restaurant’s ambiance and brand could be elevated to highlight the historic character of the hotel, appealing to both everyday diners and special occasion patrons. Cross-promotional efforts with event rentals, spa offerings, and any future residential tenants would reinforce its role as a core component of the property’s experience. With the right investments in branding, service, and consistency, the restaurant could become a sought-after destination in its own right—lifting the profile and economic viability of the broader site.

In contrast, the analysis found much more limited potential for fitness, retail, and childcare uses. All three of these uses rely on a steady, predictable customer base to function—something the Gideon Putnam site currently lacks. Viability would depend on a mix of park employees, local residents, and tourists visiting the hotel or state park. At present, none of these groups are large or regular enough to support daily-use operations on their own.

A fitness or recreation facility, for instance, typically requires several hundred year-round members to cover staffing, programming, and facility maintenance. Park staff and hotel employees are too few in number, and the site is not convenient enough for most Saratoga residents to use it as their regular gym. While park visitors might occasionally attend a class or use a fitness room, they are not reliable enough to support a standalone business. Without a substantial new base of on-site residents or daily workers, a fitness center is unlikely to succeed financially.

Retail faces similar constraints. The hotel’s setting, while scenic, is secluded—meaning foot traffic is limited, visibility is low, and convenience is poor. Traditional retail formats, such as convenience stores or boutique shops, depend either on dense nearby neighborhoods or on being highly visible within a larger destination district. Neither applies in this case. The park’s visitation is strong, but highly seasonal and “purpose-driven”: most guests come for a specific reason—hiking, spa treatments, or an event— and are not inclined to browse retail offerings during their stay. Moreover, the downtown Saratoga Springs retail market is already well-established and competitive, making it difficult for a park-based shop to gain traction.

As for childcare, the site presents even greater challenges. Childcare centers rely on steady weekday demand from working parents, ideally located along regular commuting routes. The Gideon Putnam is isolated from residential areas, making it impractical for most families to access daily. In addition, there are not enough on-site employees—either current or projected—to justify the scale of operation needed for financial viability.

Early childhood education is a promising and generally compatible reuse for a portion of the Gideon Putnam property. The site's quiet, park-like setting naturally supports nature-based and experiential learning models that are increasingly in demand with families seeking high-quality, place-based early education. The property offers a flexible footprint for the spatial needs of educational setting, including classrooms, administrative offices, other learning spaces, and secure access areas, making it feasible for an independent, licensed operator. Given regional demand for flexible preschool formats and limited capacity in public programs, this reuse could serve both community needs and year-round activation goals.

However, a preschool alone would not require the full square footage of the building, and identifying complementary co-uses presents a challenge.

Other potential uses, such as hotel, state agency offices, or residential, do not naturally align with the operational needs or character of an early education service leading to functional conflicts or underutilized space. As such, it is unlikely to represent a full-building reuse solution without a clearly compatible secondary use.

Residential Use

The analysis finds that the Gideon Putnam Hotel demonstrates moderate to high market potential for residential conversion, with viable paths for both market-rate and workforce housing models. Saratoga Springs’ multifamily housing market is defined by rising rents, historically low vacancies, and a significant share of higher-income renters, which signals sustained demand for high-quality rental units. The hotel’s existing structure could accommodate approximately 89 to 102 market-rate units, sized at roughly 1,000 square feet each, leveraging roughly 90,000 to

100,000 square feet of adaptable space. These units would be well-positioned to serve professionals, retirees, and lifestyle renters drawn to the site’s cultural and natural amenities, despite its relative isolation from daily services. In this scenario, market-rate housing could provide a financially viable reuse option, with strong potential to serve as a cross-subsidy anchor in a broader mixed-income strategy.

Workforce housing also presents a compelling reuse scenario. The city faces mounting challenges in housing affordability, especially for essential and seasonal workers who are increasingly priced out of living near their places of employment. Converting the hotel’s upper floors to smaller efficiency-style units—approximately 600 square feet each—could yield up to 170 units suitable for moderate-income tenants. This format aligns with both the needs of the city’s workforce and the physical characteristics of the hotel. While a workforce-focused model would likely require public subsidy or mission-driven financing to be feasible, it would directly address a growing affordability gap in the region. Seasonal demand from tourism and public-sector employers in the park could further support year-round occupancy.

In terms of site compatibility, the building’s scale and layout are conducive to residential use, particularly within a hybrid or mixed-use format that preserves existing public-facing spaces on the first floor. The park setting provides a unique value proposition but also introduces several constraints—regulatory, financial, and logistical—that must be carefully navigated. These include high renovation costs to meet residential standards, transportation limitations, and the complexities of operating within a state park.

One approach may be a blended model that integrates both market-rate and workforce housing, balancing financial sustainability with public benefit. This model could respond to local housing needs, leverage the site’s appeal, and support a resilient, year-round residential community in a location of regional significance.

State Agency Use

The adaptive reuse of the Gideon Putnam Hotel for state agency use is identified as having moderate compatibility for office space and training and educational space, while state/partner worker housing is limited. The demand drivers for state agency use include:

◼ High presence of office space within the Capital Region, including

625 Broadway and Peebles Island

◼ OPRHP and other state agencies face a shortage of large, high-quality training and meeting space in the region

◼ Current facilities are fragmented and often at capacity

◼ The Capital Region lacks seasonal worker housing for OPRHP staff

These demand drivers and uses for the property align with regional needs, support public-serving functions, and can be integrated into the hotel’s existing infrastructure with minimal disruption to its historic character. The

Gideon Putnam could potentially physically support upwards of 350 workers, depending on layout.

While state agency use presents certain operational opportunities for the

Gideon Putnam, it is ultimately not the most ideal fit for the space.

Converting the hotel into a full-time government office facility would diminish the public-facing purpose the building has served for nearly a century. The hotel’s historic character and location within the state park are better suited to uses that welcome and engage the public, not those that close off access or limit the visitor experience. However, office space could still be implemented in conjunction with restaurant and/or event space on the ground floor, utilizing the public spaces.

The infrastructure needed to support modern office operations and training and educational facilities, such as reconfigured floorplans, increased mechanical capacity, and technological upgrades, may involve significant costs and could present challenges with the existing building.

These actors would warrant further study and careful consideration for investment. The site’s distance to Albany, along with limited access to transit and nearby services, may pose challenges for large-scale, day-to-day state administrative operations. However, there could be benefits to having OPRHP staff located within a state park and closer to the

“customer” base to enhance mission alignment by fostering a stronger connection between staff and the natural, cultural, and recreational resources they manage as well as boosting staff morale and satisfaction from working in a more scenic, mission-driven environment. Additionally, this adaptive reuse would reduce its economic and cultural value to the park and may raise public and political concerns.

Adaptive reuse of the Gideon Putnam Hotel for state or partner worker housing is mission-aligned but limited in viability, as estimated demand from seasonal staff (25–50 individuals) falls far short of the building’s capacity to support 149–170 units. However, this use could be incorporated as an ancillary component within a larger mixed-use or residential redevelopment strategy.

Potential Use Concepts

To guide redevelopment strategy for the Gideon Putnam Hotel, we first identified a set of primary and ancillary uses that demonstrated viability based on market demand, financial potential, and identified needs in the region. These included options ranging from hospitality and residential to public and institutional use. We then assessed how these uses could function together within the existing structure—recognizing that many viable uses are only feasible in combination, with one serving as the core program and others filling out the building’s footprint and activity mix.

The matrix below summarizes the relative compatibility of each primary use with a range of ancillary uses. Based on this analysis, we developed four illustrative redevelopment scenarios that reflect the strongest and most practical combinations of uses. Each concept is grounded in both operational feasibility and alignment with the site’s physical characteristics and ownership context.

Note that further study will be needed to assess physical feasibility—such as layout constraints, required building systems upgrades, and circulation—as well as financial viability under different development and operating models.

1. Hotel and Event Space (Enhanced Status Quo)

◼ Primary Use: Hotel with year-round operations

◼ Ancillary Uses: Destination restaurant, private events (e.g., weddings, business retreats), public access lobby/interpretive space

Public Access

Lobby

(intepretative exhibit, etc.)

Destination

Restaurant

Private Events

(weddings, business, etc.)

State Agency

Meeting and

Training Space

Residential

Amenities

(lounge, fitness, etc.)

Seasonal Worker

Housing

Early

Childhood

Edcuation

Hotel ✔️ ✔️ ✔️ ➖ ✖️ ➖ ✖️

Residential - Market-Rate ➖ ➖ ✖️ ✖️ ✔️ ✖️ ➖

Residential - Workforce ➖ ➖ ✖️ ➖ ✔️ ✔️ ✖️

State Agency - Office Space ✔️ ➖ ➖ ✔️ ✖️ ✔️ ➖

Ancillary Uses

P ri m a ry

U se s

Compatibility of Primary and Ancillary Uses within the Gideon Putnam Hotel Structure

Key:

✔️ Strong Compatibility

➖ Moderate Compatibility

✖️ Weak Compatibility

◼ Rationale: This builds on the structure’s historical use, maximizing compatibility with high-traffic, public-facing uses. Compatibility with training/meeting space for OPHRP could also be considered.

2. Market-Rate Residential with Amenities and Limited Mixed Use

◼ Primary Use: Market-rate apartments

◼ Ancillary Uses: Residential amenities (fitness, lounge)

◼ Rationale: A financially-driven model that leverages the historic character and high-end potential of the site. Limited compatibility with other uses, so best paired with strong design for resident experience.

3. Workforce Housing with Supportive Amenities

◼ Primary Use: Workforce residential

◼ Ancillary Uses: Residential amenities (fitness, lounge), seasonal worker housing

◼ Rationale: A mission-aligned housing model that provides affordable or workforce units with integrated housing for seasonal park or partner employees.

4. State Agency Campus

◼ Primary Use: State agency office/training space

◼ Ancillary Uses: State meeting and training rooms, potential seasonal worker housing, limited public exhibit space

◼ Rationale: Aligns with OPRHP/state mission. The site could become a dedicated state-run training and residential facility with limited public access uses.

5. Education Anchor

◼ Primary Use: Early childhood education center

◼ Ancillary Uses: State agency office and training center; moderate potential with market-rate residential.

◼ Rationale: Aligns with educational and public-serving missions.

The site could support a nature-based preschool as the primary use, with compatible co-location of state offices or training functions. Residential use is feasible with limited scale and thoughtful separation.

Strategic Recommendations

With the current hotel operator stepping away and the building in deteriorated condition, the State Parks Agency faces a critical juncture in determining the future of this iconic property. The hotel has long served as a key asset within the park, but its continued vacancy or underuse would represent a lost opportunity—both in terms of public benefit and long-term economic potential.

To move forward, a coordinated and strategic approach is needed—one that balances market realities with the Agency’s broader stewardship goals. The recommendations below outline a set of concrete actions to help the State assess viable reuse pathways, attract investment and qualified partners, and ultimately reposition the property as a functional, vibrant, and financially sustainable part of the park system.

These steps are designed to:

◼ Clarify a future vision that reflects both mission-based and economic priorities;

◼ Build alignment among existing partners and stakeholders;

◼ De-risk and prepare the site for redevelopment; and

◼ Lay the groundwork for selecting and supporting a qualified operator or developer.

1. Establish a Clear Vision and Align Key Partners

◼ Define the overarching goals for reuse. These may include one or more of the following:

o Driving year-round visitation to the park and supporting the regional tourism economy o Supporting and enhancing existing park uses, including the spa, arts venues, and event facilities o Maintaining some level of public access, community benefit, or educational programming within the building or grounds o Achieving financial sustainability, reducing reliance on public subsidy and minimizing long-term maintenance liabilities o Preserving and celebrating the site’s historic character, either through full restoration or adaptive reuse o Providing housing, such as workforce or mixed-income units, that meets regional needs and activates the site

◼ Develop guiding criteria to evaluate potential reuse scenarios, including market viability, capital investment requirements, operational feasibility, and alignment with park values.

◼ Convene key internal and external stakeholders—including existing park operators and tourism and economic development agencies—to build consensus around a shared vision and explore opportunities for co-location, shared services, or programming integration.

2. Test Physical and Financial Feasibility of Priority Reuse Concepts

◼ Build on the completed overall building assessment by conducting test fits of the most viable reuse scenarios to determine how each use (or mix of uses) would fit within the existing building layout, structure, and access constraints.

◼ Evaluate space requirements, circulation, core infrastructure needs, and code compliance (e.g., fire safety, egress, accessibility) for each proposed use, while identifying any major physical barriers—such as floor plate limitations, column spacing, or vertical circulation—that could limit or require significant modifications to the redevelopment concepts.

◼ Pair this physical analysis with a financial feasibility assessment, estimating the cost of necessary upgrades and comparing that to projected revenue and operating models for each scenario.

◼ Use the results to narrow down the most practical and cost-effective reuse options for implementation or marketing.

3. Identify Funding and Financing Tools

◼ Assess the State’s potential role in making catalytic investments to attract private partners or developers.

◼ Explore applicable public and private funding sources, including:

o Federal and state historic preservation tax credits o Low-Income Housing Tax Credits (LIHTC) if residential conversion is pursued o State capital investment programs or infrastructure grants o Public-private partnerships, including long-term lease or revenue-share models

4. Launch a Strategic Developer/Operator Search

◼ Prepare and issue a Request for Expressions of Interest (RFEI) or

Request for Proposals (RFP) to gauge interest and solicit proposals from experienced developers or operators.

◼ Highlight flexibility in allowed uses, opportunities for shared infrastructure or joint programming with other park facilities, and potential incentive packages.

◼ Consider outreach to a range of potential partners—including hospitality developers, senior or workforce housing operators, educational institutions, wellness/retreat organizations, or mission-driven nonprofits.

5. Address Regulatory and Operational Hurdles

◼ Clarify zoning, permitting, and regulatory conditions that may impact redevelopment.

◼ Determine the Parks Agency’s preferred long-term role—whether as landlord, active partner, or facilitator—and outline expectations for future governance, maintenance responsibilities, and capital reinvestment.

INTRODUCTION

The Gideon Putnam Hotel (“the property) and the Roosevelt Baths and Spa, nestled within the historic grounds of Saratoga Spa State Park, represent one of the most iconic hospitality and wellness destinations in Upstate

New York. With its 1935 architecture, access to natural mineral springs, and proximity to renowned attractions like Saratoga Performing Arts Center

(SPAC), the Hall of Springs, and the Saratoga Race Course, the property has long played a central role in Saratoga Springs’ cultural and tourism identity. However, like many legacy properties, it now faces mounting challenges: shifting travel preferences, increasing competition from short-term rentals, and growing need from infrastructure reinvestment.

This report explores the future of the Gideon Putnam Hotel through a comprehensive market analysis designed to assess the viability of continued hospitality operations and evaluate alternative compatible uses.

Drawing on economic data, tourism trends, financial performance, stakeholder interviews, and spatial compatibility, the study presents a data-informed case for revitalization, with a particular focus on how adaptive reuses or repositioning could preserve the hotel’s historic character while enhancing its long-term sustainability. Key data sources included:

◼ Lightcast: Lightcast is a proprietary economic data source that provides information including local and regional industry data.

◼ Esri Business Analyst: Esri data was used to understand local and regional demographic and consumer characteristics, including spending patterns, participation in types of activities, and overall market potential.

2. Event Use

1. Hotel Use

5. State Agency Use

3. Commercial Use

4. Residential Use

Compatible Uses Assessed for

Gideon Putnam Hotel Building

◼ CoStar: CoStar provides detailed commercial real estate and hotel data and was utilized primarily to understand local hotel market trends and potential.

The analysis in this report provides an assessment of market viability only.

Further analysis will be required to confirm the overall feasibility of the potential uses, including the physical capacity of the building to host such uses, the required costs to renovate the facility, and the financial viability of making the facility investments needed to support revenue generation.

While the Saratoga Springs lodging market remains resilient, selling over

451,000 hotel room nights in 2024 and generating nearly $100 million in room revenue, the Gideon Putnam underperformed with occupancy lagging at 58% compared to the market average of 65%, despite operating only seasonally. This gap reflects growing competition from newer hotels and short-term rentals. Nevertheless, the property retains major advantages: it is the largest full-service historic hotel in the region, enjoys walkable access to major attractions within the park, and benefits from consistent visitation demand drivers in the region.

The analysis that follows evaluates a range of potential future uses, including an analysis of the lodging market and its continued potential, events, residential, commercial, and state agency uses, through the lens of market demand, regional trends, physical suitability, and mission alignment with the surrounding state park.