The Kettle Falls Hotel was built in 1910/David and Kay Scott

The National Park Service recently issued a prospectus for the operation of one of its most unusual lodging facilities, Kettle Falls Hotel in Voyageurs National Park in Minnesota.  The prospectus also involves such associated services as retail, boat rental and portage, marina services, guest transportation, and food and beverage service. The hotel is accessible only by boat or float plane and is the only Park Service lodging facility within the park. Transportation for guests can be scheduled when room reservations are made.

Kettle Falls Hotel was constructed in 1910 to offer accommodations to fishermen, construction workers, and lumberjacks. Following the decline of commercial fishing and logging, the hotel increasingly relied on tourism. The building was acquired by the NPS in 1978 and extensively rehabilitated in the mid-1980s.

The two-story frame hotel is home to 12 modest guest rooms, plus three community bathrooms, all on the second floor. The main floor includes the guest dining room, lobby, screened veranda, and a bar room with a most unusual rolling wooden floor.

One of the three villa structures on the property/David and Kay Scott

Three villas on the lake shoreline east of the hotel house six guest units, half with a kitchenette and half with a refrigerator and microwave. Connecting doors allow access to both room types. Four new camper cabins on the west side of the hotel have electricity but no running water.  A vault toilet is available for cabin occupants. Lodging rates for 2023 are $90 for a double room ($70 single) in the hotel, and $210 to $260 for a villa with a 3-day minimum.  A discount on the villas is available for a one-week stay.  The hotel rooms may well be the only sub-$100 rooms in a national park lodge.

A boat portage service between Rainy Lake and Namakan Lake is required as part of the contract. Portage availability is necessary due to the Kettle Falls dam blocking water transit between the two lakes. 

Retail service including souvenirs is offered in the hotel lobby and at a trading post located near the Namakan Lake shoreline. A marina provides boat and motor rentals, bait, fuel sales and overnight docking. The prospectus also authorizes the concessionaire to offer boat-based interpretive tours, fishing guide services, boat repair, guest laundry service, and more.

NPS reports total concessionaire revenues of $850,000 for the 2021 season. Lodging accounted for approximately 25 percent of overall revenues, while the restaurant, bar, and retail each contributed about 18 percent of revenues. The remainder was derived from marina operation, transport of guests to the hotel, and portage services. 

Interestingly, the NPS doesn’t offer guidance on future revenues as is typically found in most prospectuses. The prospectus specifies a minimum franchise fee of 3.9 percent of gross revenues to be paid to the NPS although bidders can improve their chance of securing a contract by offering a higher percentage. 

The draft contract proposes a contract for 10 years with an effective date of January 1, 2024. Commercial operations at Kettle Falls are seasonal, beginning in May on the first Friday prior to Minnesota’s state fishing season (what else?) and closing at the end of September. Proposals must be received in the Omaha office of Concessions Specialist Kelly Kager by April 13.

While the hotel is geared toward individuals who live to fish (not fish to live), we enjoyed two visits to Kettle Falls despite having no interest in dropping a line in the water.  In each instance we stayed two nights in the late fall when the concessionaire was preparing to close for the season and there were few other guests. We spent our days reading, visiting with staff and other guests, strolling the trails, sitting by the lake, and dining on walleye pike. They were very enjoyable visits.

David and Kay Scott are authors of “Exploring the Oregon Trail.”  They live in Valdosta, Georgia.  Visit them at blog.valdosta.edu/dlscott