Access HVS 2014, HVS’ latest hospitality summit series, concluded today following a run through Atlanta, Columbus, Dallas, Denver, Minneapolis, New Orleans, Philadelphia, Portland, St. Louis, and Houston. The conference series brought together over 560 industry stakeholders, business leaders and key decision-makers from the hotel and tourism industry from across 30 states. The event took place throughout September; HVS managing directors delivered insights on historical and projected performance levels, major drivers of demand, the new supply pipeline, and the latest hotel transactions from their local markets.
Key takeaways from each market include the following:
By the end of 2014, Atlanta’s hotel performance should surpass its previous peak, with growth expected to continue through 2018. More than 4,500 rooms are expected in the metro area—and another 497 just outside it—over the next two years.
Columbus, Ohio’s hotel industry has been on a hot streak since 2012, with growth continuing through the summer of this year. Columbus’ average rate is expected to rise through 2018.
Demand in Dallas has outpaced supply since 2010, and the city experienced a new peak in occupancy last year. Dallas’s average rate and RevPAR are expected to grow through 2018, and approximately 2,158 rooms are expected to come online in the city over the next 12-14 months.
Denver hotel demand has far exceeded supply growth since 2010, and occupancy reached a new high in 2012. The city’s average rate is expected to peak in 2017, by which time more than 4,000 new rooms are expected to have opened in the Denver MSA. The 928 new rooms expected by 2018 in Boulder represent an unprecedented level of growth for the city
Hotel demand in Houston has outpaced supply since 2010, and occupancy reached a new peak in 2013. Fifty hotels totaling 8,000 new rooms are expected to open by 2017, and while average rate should continue to rise, RevPAR growth will likely slow due to the increase in supply.
Minneapolis–St. Paul’s hotel industry fully recovered in 2013. Minneapolis–St. Paul’s average rate is expected to grow through 2018, and approximately 1,384 new rooms are anticipated in the MSA by 2016.
New Orleans’ hotel supply has increased year-over-year since 2005, and occupancy surpassed its previous peak in 2012. Average rate has significantly increased since 2010, and both average rate and RevPAR are expected to grow through 2018. Approximately, 2,393 new rooms are expected in New Orleans by 2016.
Philadelphia’s recovery has been slow, but the city’s average rate is expected to surpass its previous peak in 2015. Approximately, 1,717 new rooms are expected in the Philadelphia MSA by 2017.
Portland, Oregon’s hotel performance realized a full recovery to pre-recession levels in 2012, and average rate for the city’s hotels is expected to grow through 2018. Seattle’s occupancy fully recovered in 2013; average rate for Seattle’s hotel market is also expected to increase through 2018.
St. Louis hotel demand has significantly outpaced supply, and both occupancy and average rate reached a new peak in 2013. Both average rate and RevPAR in the city are expected to grow through 2018, and approximately 777 new rooms are expected to come online over the next 12-14 months.
Presenters also shared national insights and results from the new HVS General Manager Survey and Broker Survey, as well as the 2014 HVS | STR Hotel Valuation Index (http://hvi.hvs.com) for each metro area. Of note, 90% of GMs expect stronger hotel performance over the next twelve months, and the vast majority expects increases in corporate, meeting and group, and leisure demand.
HVS experts at respective events included Mike Brophy, Director Business Development and Partner in Atlanta; Stacey Nadolny, Senior Vice President and Partner in Columbus; Russ Rivard, MAI, Managing Director and Partner, and Kathleen Donahue, Senior Vice President, in Dallas; Brett Russell, Senior Vice President and Director of Business Development in Denver; Luigi Major, MAI, Managing Director and Senior Partner in Houston; Tanya Pierson, MAI, Managing Director in Minneapolis; Adam Lair, MAI, Managing Director and Senior Partner in New Orleans; Jerod Byrd, Senior Vice President and Partner in Philadelphia; Kasia Russell, Senior Vice President and Partner in Portland; and Dan McCoy, MAI, Managing Director and Senior Partner in St. Louis. For events and resources on U.S. hotel markets, please visit accesshvs.hvsconferences.com.
Rod Clough, MAI, Senior Management Director at HVS, said: “Our thanks to all who took time out to attend Access HVS with us this year. We undertake thousands of full-service hotel appraisals in the U.S. each year, and we’re proud to share our market intelligence in a forum with hotel stakeholders in these ten growing, dynamic cities. The broker and general manager surveys reinforce HVS projections about the path of recovery for the hotel industry in the U.S., which should be very encouraging to hotel industry leaders looking forward to next year.”
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