Confederated Tribes of Warm Springs transforms its historic hot springs into a $9,000,000 success story.
By Andrew Cutler
A unique Oregon landmark with deep Native American roots surmounted economic obstacles and challenges from Mother Nature to once again be an innovative, high-desert jewel.
For decades, people in Oregon recognized the name Kah- Nee-Ta as a leader in Oregon tourism. The name was recognized for offering Native American culture among high desert panoramas while soaking in refreshing hot springs-heated water. The renowned resort east of the Cascades earned a Western and international reputation as a go-to spot for thousands of visitors every year.
Yet in September 2018, the resort—facing growing economic stress and without the resources to renovate the facility’s water system—was closed by the Confederated Tribes of Warm Springs. The hot spring pools were silent and the on-site teepees vacant, but a dedicated group of devotees began to work behind the scenes to reopen the resort. The Warm Springs community united to collect funding, spearhead leadership, and inspire innovation into a grand vision to bring Kah-Nee-Ta back to life.
But Mother Nature struck just months before the planned 2023 grand reopening. An unpredictably fierce storm raged through Central Oregon, aiming for the Warm Springs River. The storm slammed 1 key area of the reservation: Kah-Nee-Ta Hot Springs Resort.
“The insurance claim exceeded $2,000,000,” says Jim Souers, CEO of the Resort and the Warm Springs Economic Development Corp. “It took over 4 years to bring the resort back. After the storm, people thought we were crazy when we told them it would open in the summer of 2024. They said, ‘You’re not gonna open.’”
But it did. On July 18, 2024, the resort was back in business and, in its first 6 months, generated $3,200,000 in revenue—double what the resort averaged annually in its entire previous existence.
At the end of 2025, revenue exceeded $7,000,000, earning $1,000,000 profit for the tribes, which reinvested half of it back into the resort.
The effort to revitalize the resort evolved into the largest jobs program for the tribe in 15 years. It employs about 110 people during peak tourism season and 50 during the offseason. Nearly 70% of those workers are tribal members.
A History Written in Water
The name Kah-Nee-Ta derives from the native name of a woman named Xnitla, who owned the property before the tribe bought it in the early 1960s. Xnitla means “root digger.” But the hot springs themselves have been part of tribal life since time immemorial—600 gallons a minute flowing at 135 degrees, bleeding into the Warm Springs River where tribal members washed clothes, soaked, and gathered.
“Soaking in the hot springs water is 1 of the activities,” Jim says. “You soak and then jump into the Warm Springs River. You get this hot/cold experience, which is a tribal and worldwide recognized practice for healing."
In the early 1960s, a study conducted by Oregon State University showed several possible viable economic projects for the tribe. 2 specific projects led the list: a lumber mill and a resort. The tribe developed both projects. It created Kah-Nee-Ta Village—15 teepees on dirt and 3 large pools fed by the hot springs. In 1972, the tribes added a lodge with a hotel and convention center, then a golf course.
The history of the resort, though, is also one pockmarked with catastrophe.
In 1964, Oregon experienced its worst flood in 200 years. The flood destroyed everything on-site. The tribes rebuilt. In 1996, Oregon’s second 100-year flood destroyed the facility again. Insurance paid to rebuild, and the structures standing today—the buildings, teepee locations, and RV park expansion— date to 1997.
Other challenges arrived. In the mid-1990s, the tribes added a casino at the lodge. The move made the resort more profitable, but tribal leaders realized the casino’s location was too remote. Highway 26 between Portland and Bend runs right through Warm Springs, with thousands of cars passing daily. The tribes decided to relocate the casino there.
“(It was) the right decision for the casino, as it made it more profitable,” Jim says.
But pulling the casino left the resort without an economic engine. By September 2018, facing losses and infrastructure challenges the tribes could no longer afford, the resort closed.
“I asked the tribes’ CEO at the time if (Warm Springs Economic Development Corp.) could put a plan together for Kah-Nee-Ta reopening,” Jim says. “I was told that we could, so that started the ball rolling to create a plan for leadership to consider.”
The new blueprint required an outside partner. Jim approached Kurt Hanna, owner of Ski Bowl on Highway 26 near Government Camp. Kurt had bought the ski resort 34 years earlier, redeveloped it, added hotels, and held a keen sense of tourism’s peak- and off-season realities. His property borders the reservation, and he served on boards with the tribes.
“He said, ‘Yes, we can help make this a success again, and I want to do something that helps the tribe,’” Jim says.
In 2022, WSED and Ski Bowl presented an ambitious plan to the tribal council. The Village Phase 1 plan included $6,000,000 in funding—$1,500,000 for the wastewater lagoon system that needed rebuilding and $4,500,000 for the resort. They would need another $3,000,000 later. Tribal leadership agreed, with 1 stipulation.
“Leadership even said, ‘Listen, you focus on the village,’” Jim says. “We agreed and committed to focus on Phase 1 of the proposal, which focused on the village. Phase 2 and Phase 3, over time, would involve the golf course, and Phase 4 the lodge.”
7 Pools and a Philosophy
The planned transformation centered on 1 central theme: This had to be a true hot springs resort.
The old pools were 3 large recreational pools filled with hot springs water mixed with community water.
A Kah-Nee-Ta team, WSED, and Ski Bowl demolished everything and built 7 new pools, each using 100% hot springs water cooled through heat exchangers. This ensured that hot and cold water were not mixed. The new $2,000,000 pool system recirculates 90% of the water, filtering and adding more hot springs water to reach the desired temperatures, rather than constantly flowing fresh water into the pools that then overflows and drains out to the waste stream.
“It conserves community water and hot springs water,” Jim says. Each pool maintains a different temperature for different purposes. There’s a kiddie hot springs soaking tub for parents with small children. A recreational zero-entry pool with temperatures in the 80s lets children walk in gradually. The lazy river with a center volleyball stays in the 80s for active play.
There are 3 soaking pools. The largest pool averages 95 degrees and features Americans with Disabilities Act-compliant accessibility ramps and steps. A second, smaller pool averages 102 degrees and is infused with ozone and oxygen bubbles using Japanese technology for skin bacteria control. The third soaking pool averages 106 degrees.
Along the river, the team built 18 semiprivate hot tub soaking cabanas looking down at the water. They remodeled the 30-room hotel, replaced 20 authentic teepees with new ones, expanded to 70 RV sites (50 full hookup, 20 dry camping), and added a full-service restaurant and bar where a gift shop used to be.
“We were planning to open in the summer of 2023,” Jim says. “We were rocking and rolling. I mean, we were just full steam ahead.”
But the freakish storm in 2023 derailed progress. It damaged roofs, buildings, and the grounds, requiring complete repairs to some buildings. The $2,000,000 insurance claim and settlement delays pushed the opening back an entire year.
“There were 60 people working on this project,” Jim says. “After the storm, we sent them all home. This created major problems that had an impact to our schedule and costs.”
When an insurance adjuster showed up 6 weeks after the storm, expressing doubt they would open by summer 2024, Jim reminded him there’d been 60 workers on-site before the storm hit.
“So don’t tell us we couldn’t do this,” he says.
A New Chapter
The resort previously averaged $1,700,000 in annual revenue and earned a modest profit. It provided jobs for the community and allowed visitors to enjoy a native cultural experience while having fun in the Central Oregon high desert climate.
The relaunch of the resort exceeded conservative projections. The $7,400,000 in 2025, the first full year’s revenue, represents a successful transformation.
Now, day passes provide pool access and use of anything on the property, including disc golf, basketball courts, bocce ball, pickleball, volleyball, mini golf, and 15 miles of hiking trails. The resort offers river tubing, horseback riding, and connections to Deschutes River fishing guides. A shuttle runs between Kah- Nee-Ta and the casino 8 miles away in Warm Springs, where the Smithsonian-registered tribal museum was recently remodeled.
Story time for kids incorporates tribal culture. Salmon bakes follow traditional methods. The teepees offer a camping experience with a fire pit and an open sleeping space.
The hot springs tradition spans cultures and generations— something tribal members and people who grew up visiting Kah- Nee-Ta understand instinctively.
“Looking ahead 5 to 10 years, we envision future improvements that could include a 200-unit RV park, an outdoor amphitheater, and a 9-hole family-friendly golf course, outdoor slides, and an indoor water park for all-season use,” Jim says. “Bringing back the lodge remains the hardest piece of the puzzle.”
The reservation’s north half, where Kah-Nee-Ta sits, is served by Wasco Electric Cooperative. Jim credits WEC for being extremely supportive during various projects.
“Our team is impressed and thankful for the support we have received from everyone at Wasco,” he says.
The rebirth of the resort is a success story for the tribe. Employment matters. Revenue matters. But there’s something deeper, too. Bringing back a place that holds vivid memories and cultural experiences for so many allows the resort to provide new memories moving forward.