Buying a motel to attract summer staff was not Plan A for Short’s Brewing. But it works

Short’s Brewing had to “deepen our bank of ideas” to solve both a staffing and housing crisis before the summer.

The company purchased the Bellaire Inn in April and welcomed its first guest two hours later. The 25-room motel is a solution to the staffing and housing shortages that are becoming increasingly urgent in Northern Michigan.

“We were getting closer to the season and a lot of people were telling us that they just couldn’t find accommodation so they couldn’t work,” CEO Scott Newman-Bale said. “Knowing we couldn’t open without more employees, we had to follow a plan – I don’t know what letter it was, but it definitely wasn’t plan A.”

Hot tourist spots are feeling the pressure of low inventory and high prices as Airbnbs and vacation homes eat into a tight market. In turn, there are a growing number of employers building their own housing options.

In Traverse City, the Grand Traverse Resort and Spa is investing $1.5 million to expand staff dormitories. In Boyne Falls, a former accommodation site has been transformed for Boyne Mountain employees. And Cherry Republic employees can spend the summer at a local boarding school that has been renovated by the company.

Related: In the north, tourists provide accommodation for local workers. Employers build their own.

Short’s employees were essentially bidding against each other as they searched for housing in Bellaire, Newman-Bale said. To avoid getting into a bidding war with them, the company had to look for something unique.

“We didn’t really want to compete with our employees to buy houses for other employees,” Newman-Bale said. “We had to deepen our bank of ideas. Building is impossible. So we looked for existing structures and what better than a motel?

Located at 728 E. Cayuga St., the motel is just down the street from Short’s Bellaire pub. There are currently 20 rooms used as employee accommodation. Seventeen are occupied by more than 30 Short employees.

The rooms are fully furnished and equipped with bathroom, fridge and microwave. Most rooms have two beds, so some employees sleep together. All utilities are also included for $600 per month, with a discount for Short employees.

The Bellaire Inn is still run as a motel with rooms available overnight as well. Alongside the employees are workers from other companies, victims of the Gaylord tornado, and nonprofits using the space.

When the purchase of the motel was announced, Short planned to open it up to other businesses struggling with employee housing. Demand was even higher than Newman-Bale had anticipated.

With Short’s growing presence in Bellaire, the brewery is now taking on even more of this responsibility to grow the community.

“We have a significant part of downtown, so we do well when the community is doing well,” he said. “Everything has to go on. We have to keep everyone open. That’s why when we got the hostel, we also wanted to help other businesses.

Having a housing option has certainly been a recruiting tool for Short, although Newman-Bale admits some people are really looking for housing first and work second.

“Everyone who applied made it clear that they needed the housing option, and that’s a requirement for them to come and work for us,” he said. “I don’t think we would ever be able to get close to a full squad without it.”

Housing affordability has plagued northern Michigan employers as their staff try to make it work any way they can. Previously, Short’s staffers lived in campsites, in trailers and out of their cars, Newman-Bale said. When campsites filled up or the seasons changed, the brewery lost staff mid-year.

Providing housing was a must for Drake Manwaring, a college intern living at the motel.

Manwaring, who is from Indiana and is studying hospitality at Ferris State, couldn’t have done the production internship without the Bellaire Inn and the employee discount on rent.

“It was pretty much a deal breaker for me,” he said. “If I didn’t have a home, I don’t know what I would do. Obviously I don’t think I can afford to live here without this option because they give you a good deal to live there.

Short’s Brewing has acquired other buildings across Bellaire for business purposes, and Newman-Bale has not ruled out expanding the motel.

Ideally, the brewery wouldn’t go into the construction business, Newman-Bale said. But they could be pushed to do so.

“It’s not something we want to do,” he said. “Housing construction is not in our wheelhouse. Although we have some experience in this area. That said, we have to do what we have to do. We have to keep the doors open. And if it involves entering accommodation, then we will.

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