“The good news is that if you draw something up on paper and it actually works like you draw it up, the hotel is a success,” said Mike Beal, chief executive officer of the Dimond Center Hotel LLC. “It's paid off $2 million in principal and is generating a substantial amount of cash.”

The hotel has generated enough cash to plan an expansion of rooms, restaurant, hot tubs in the courtyard, and possibly even a large swimming pool, according to Beal.

Beal, who opened the hotel less than five years ago, said that the expansion from 109 to 149 rooms was part of his business plan all along.

“It was my plan to make this a hotel under 150 rooms,” Beal said. “This was just one of the spokes in the wheel.”

The hotel, located just south of the Dimond Center, is 72 percent owned by the Seldovia Native Association and the Ashlock family, which owns 28 percent.

The expansion, designed by ASCG Inc., will increase the hotel along the west side of the building by adding a level of parking under the building, topped by a block of rooms.

ASCG agrees that Beal's plan has long-range vision.

“It is a pleasure to work with Mike and his staff, and the Seldovia Native (Association) because they know exactly what they want, and we have partnered with them to help them achieve it,” said Bristol Vaudrin Haggstrom, the Alaska region marketing director for ASCG.

If Beal has his way one of several plans offered by ASCG will include a dome-covered swimming pool in the courtyard, extend the breakfast bar out into the courtyard and add a restaurant.

“That is my dream, but we may have to scale back if costs are too much,” Beal said.

The Dimond Center Hotel is planning to add 40 additional rooms to its south Anchorage property. The addition will look something like this, and feature eight hot tubs in the area where the courtyard now exists. PHOTO/Rob Stapleton/AJOC

No matter which option is chosen, Beal is pleased that the hotel will offer an Anchorage connection to the Kachemak Bay, where he and the corporation plan on expanding “soft eco-tourism.”

Beal said the long-range vision of the company is to further tourism in the Kachemak area, where the Seldovia Native Association has landholdings.

But the biggest goal of the expansion is to attract business travelers.

“If we add the pool or the hot tubs and make some other minor changes then we will make the four star category,” Beal said. “Once we have this rating, it will be easier to offer a one-price package for a real Alaskan vacation, where you have every detail worked out to go trekking or bear viewing or walking along the tide line of the beach.

“It's a great position to be in,” he added. “The success of your investment, to re-invest in your investment.”

What makes the three star hotel different comes from its Alaska Native-owned board of directors, according to Beal.

“The board stays here a lot, and they wanted a clean hotel with good service,” Beal said. “So as a CEO it makes it easy for me because I can spare no expense for our service to our clients, unlike other hotels that are scrutinizing these types of expenses.”

Beal says the hotel is falling into place just as planned

“We're running at 82 percent capacity, making a profit, employing the shareholders and paying the owners,” Beal said.

Besides making a profit for the owners, who gambled all they had to bank on this investment, Beal is also credited with breaking new ground with the furniture and Alaskan decorations.

Besides real hardwood furniture, modern boutique-type furniture, a bar and a breakfast bar, this no-brand hotel has bigger rooms, bigger TV screens and offers hot tub-type bathtubs in each room.

Perhaps that is the reason that Yahoo voted the hotel as the three star hotel of the year in 2005. But with the Yahoo rating came even more customers.

“We get more than 30 percent of our clients, business travelers from Internet bookings,” Beal said.

While local perception is that the hotel attracts from mainly rural Alaska, that is only part of the hotel's client list.

“Most of our clients are business people calling on retail stores in the Dimond Mall, or out-of-town family members who want the freedom of staying in their own hotel room and shopping at the mall,” said Beal.

Beal would not reveal the amount of money planned for the expansion or the amount originally invested by the Seldovia Native Corporation in the hotel venture.

“We haven't had to replace one piece of furniture in four years, which originally cost us about 7 percent more on the shipping end,” said Beal. “But it is time for a fresh new look, we are going to go with colorful leather furniture during this remodel and construction period.”