Feb. 14, 2024

This paid piece is sponsored by The Ramkota Companies.

After several years of unprecedented demand, travel in 2023 began to look a bit more normalized.

“It was a good year and what I would call more of a stabilized year,” said Josh Schmaltz, president and CEO of Sioux Falls-based The Ramkota Companies.

“When you have multiple record years, that becomes the new benchmark and expectation, but we’re happy with how 2023 ended. Between leisure and corporate travel, the last few years have been volatile, so we’ve learned to adjust and adapt and reinvent ourselves.”

CEO Josh Schmaltz and Tom Morris, executive vice president and chief financial officer.

The Ramkota Companies, which includes 55 properties and nearly 5,000 rooms, continues to position itself to meet the hospitality industry’s future. The past year brought a top-to-bottom renovation of the ClubHouse Hotel & Suites in Sioux Falls, for example, with more improvements ahead.

“We couldn’t be happier with the way that complete renovation turned out,” Schmaltz said. “We’re hoping to start on the expansion this spring. There have been a number of obstacles around permitting, but our general contractor, Beck & Hofer, has been a great partner, and once we get final permitting and Mother Nature cooperates, we’ll be digging and putting up walls this spring.”

From there, the 10-month project is designed to add 44 rooms, plus a connecting concourse.

“We also have great things happening in Pierre with renovations planned for both our Ramkota and ClubHouse properties,” Schmaltz said.

“And we’re excited for our opportunities in Rapid City with a new ClubHouse under construction and scheduled to open in early 2025. Our restaurant partner, WR Hospitality, is also building a restaurant that will be connected to the hotel and will be a great addition to a rapidly growing part of the city.”

Ramkota continually evaluates its portfolio, most recently selling its Arrowwood Resort & Conference Center in Okoboji, Iowa, to a local ownership group in that area.

“We are starting to sell off some properties, and those are hard decisions to make – not because of the buildings themselves but the people inside them who have been with us for years,” Schmaltz said. “We do our best to find buyers who have the same values and vision we have as we look to sell certain properties.”

At the same time, Ramkota is “in full growth mode and continuing to look at opportunities to develop and acquire properties,” he continued.

“We’re primarily looking in the Midwest and interested in limited-service, mid- to upper-scale properties. We’re looking in Sioux Falls at development opportunities and looking in Omaha. Construction costs have made some new development difficult, but you just “have to adjust and make changes accordingly.”

One hurdle that’s becoming easier to manage is workforce. Ramkota began an ESOP, or employee stock ownership program, for qualifying employees several years ago, and “we’re seeing the increased loyalty in our team that we hoped it would create,” Schmaltz said.

“It’s definitely improved retention, and as we have good years, our employee-owners are realizing they share in that as their share value increases. They can start to look ahead to their retirement and see what a game-changer it’s going to be.”

Looking ahead to 2024, there’s a lot to anticipate for Ramkota properties, he added.

Custer State Park will enjoy its first full season with the reopened Sylvan Lake Lodge and its new on-site general store and eatery, and Arrowwood Cedar Shore Resort & Conference Center on the Missouri River at Oacoma will take advantage of comprehensive marina upgrades.

“Plus, we’re continually working on other improvements and new additions portfoliowide,” Schmaltz said. “Some of it is a little premature to talk about, but we have some really good things happening.”

To learn more about career opportunities with The Ramkota Companies, click here.