Hotel Overbuilding?

KC topics that don't fit anywhere else.
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normalthings
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Re: Hotel Overbuilding?

Post by normalthings »

earthling wrote:
Sat Jul 10, 2021 9:49 am
^Overflow buses along streetcar lines could potentially be arranged for particularly busy events/weekends if not more frequency of streetcars.
Good idea in the near term. I also wonder how much of a lift it would be to use a 5 body train on the existing platforms. If you fit the back 2 doors on the existing platform, you can just convert car parking or unused spaces to sidewalk space. It wouldn’t be level boarding but the front and back doors aren’t level today anyways.

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earthling
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Re: Hotel Overbuilding?

Post by earthling »

KC metro occupancy and forecast according to...
https://www.hvs.com/article/9119-covid- ... ing-market

Will be impressive if KC can maintain over 60% occupancy in a couple years along with the 10K rooms in pipeline.
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earthling
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Re: Hotel Overbuilding?

Post by earthling »

Some suburban KC hotels converting to apartments. This might justify the abnormally high 8=9K+ hotel rooms planned for KC. It wouldn't grow net supply as much but repurposing older/undesirable hotel properties helps maintain overall higher % occupancy and raises bar of available stock. Potentially we'll see a net shift towards more hotel rooms from urban core to airport and fewer % representation in rest of burbs over time. Conversion of suburban motels to storage units also common.

https://www.bizjournals.com/kansascity/ ... mp-up.html

edit: BTW, the Newmark report for KC had a lot of duplicated entries for hotels in pipeline. It comes to about 7K rooms or so not 10K that is in pipeline. Still much higher than all markets in Midwest except Chicago.

earthling
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Re: Hotel Overbuilding?

Post by earthling »

CBRE Q2 national hotel report..
http://cbre.vo.llnwd.net/grgservices/se ... 3dca6c312a

KC not on list for either top 10 or bottom 10. Economy/Midscale doing better than before pandemic, Midscale to Luxury not yet returned.

earthling
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Re: Hotel Overbuilding?

Post by earthling »

The is another top/bottom 10 list from Newmark for national hotel industry in Q1. The one category KC stands out... supply growth.

https://www.ngkf.com/storage-nmrk/uploa ... tom-10.pdf

earthling
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Re: Hotel Overbuilding?

Post by earthling »

Newmark Q2 hotel report. KC metro Revpar/occupancy improving but a bit behind US in RevPAR "performance index" and a bit below Midwest avg in occupancy. KC occupancy still under 45%, not good. Minneapolis is struggling. Many new hotel rooms still in KC pipeline...

KC metro
https://www.nmrk.com/storage-nmrk/uploa ... s-City.pdf

All of Midwest
https://www.nmrk.com/storage-nmrk/uploa ... eports.pdf

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