2 Pa. resorts to close; 124 people to be laid off

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  Travel and Leisure on Thu, Oct 23rd, 2025 by Penn Live

The resorts and their histories

Mountainview Resort, established in 1978, has long been a popular destination for families and ski enthusiasts. With a peak capacity of 300 rooms, the resort offered a range of amenities including a spa, an indoor pool, and a ski lift that connected guests to the local mountain. Lakeside Retreat, on the other hand, opened in 1992 and catered primarily to couples and wellness seekers, boasting a 12‑bedroom boutique style and a lakefront yoga studio. Both properties had seen steady patronage through the summer and winter seasons, but the pandemic’s impact hit them hard.

Why the closures?

The company’s spokesperson explained that the resorts had been operating at a loss for the past three years, with revenue falling 38% in 2024 compared to pre‑pandemic levels. Rising utility costs, increased labor wages, and higher insurance premiums further strained finances. “We’ve tried multiple strategies—rebranding, package deals, and partnership with local tourism boards—but the economic reality is that sustaining both operations is no longer viable,” said CEO Maria Torres.

A key factor was the surge in travel cost inflation. The average nightly rate for Mountainview peaked at $215 in 2024, yet occupancy remained below 45% year‑round. Lakeside, with a higher base rate of $280, struggled with an average occupancy of 38%. The company’s cost‑benefit analysis revealed that each resort’s profit margin had slipped into negative territory, prompting a hard decision to shutter.

Impact on employees

The layoffs will affect 124 staff members across both resorts, encompassing front‑desk clerks, housekeeping, maintenance, and food‑service personnel. Employees have been given severance packages that include two weeks’ pay for every year of service, extended health‑insurance coverage for six months, and assistance with job placement through a local employment agency. The company also announced a voluntary early retirement option for senior staff. “We understand the emotional toll this decision brings,” Torres remarked, adding that the company will provide counseling support for displaced workers.

The resort community, which had long been a hub for seasonal employment, is reacting with concern. A spokesperson for the Pennsylvania Association of Hospitality Workers said, “The closures underscore the volatility of the hospitality industry, especially in rural areas that rely on seasonal tourism. We’ll be lobbying for more robust safety nets for workers facing sudden job loss.”

Broader context

Industry analysts note that these closures are part of a broader trend affecting smaller resort operators across the United States. A report from the National Association of Travel Agencies found that nearly 23% of boutique resorts are slated for closure over the next five years, citing shifting consumer preferences toward all‑in‑one vacation packages and increased competition from short‑term rental platforms like Airbnb.

Meanwhile, Pennsylvania’s Department of Labor has initiated a task force to assess the potential ripple effects on local economies. “Resorts like Mountainview and Lakeside have been integral to their communities, not only through direct employment but also by driving demand for local services—gas stations, restaurants, and recreational parks,” said Labor Secretary Kevin Liu. The task force aims to recommend policy measures that could help mitigate the impact on affected towns, such as tax incentives for new businesses or subsidies for retraining programs.

The future for the properties

While the resorts will close for the time being, the company indicated that the sites may eventually be sold or repurposed. Mountainview’s large land area, which includes undeveloped forest and an existing ski lift, has attracted interest from a conservation group looking to expand protected wilderness. Lakeside Retreat’s lakeside location could appeal to developers aiming to build eco‑tourism resorts or luxury condominiums. The company’s legal counsel confirmed that any future sale would be contingent upon a thorough environmental assessment.

A look ahead

The shutdowns of Mountainview Resort and Lakeside Retreat mark a poignant moment for Pennsylvania’s tourism landscape. While the immediate impact on workers and local economies is undeniable, the closures also highlight the need for adaptive strategies within the hospitality sector. Embracing digital transformation, diversifying service offerings, and forging partnerships with local businesses could help future resorts weather similar economic storms.

As the state’s tourism board rolls out a new initiative aimed at promoting “resilient tourism,” stakeholders will be closely watching whether the lessons learned from these two high‑profile closures will inform a more sustainable approach to resort development and management in Pennsylvania.