KCRag Forum

Posted: **Tue Jan 26, 2021 11:25 pm**

normalthings wrote: ↑Tue Jan 26, 2021 10:53 pm Colliers' 2021 KC Metro Outlook report had some interesting info

2020 deliveries 1,655 total rooms
Under construction 1,327 total rooms
Announced 6,067 total rooms

These are the urban core projects that I do not recognize. They also noted a 304 room Plaza hotel project and the Tribute & Aloft projects so I assumed those all to be the same.

Epoch - I believe was a River Market area proposal from a few years back that included a high-rise apartment building.
Home2 - A dual-brand with a Tru Hotel located on 50th Street between Main and Wyandotte. Neighbors shot that down about 3 years ago.
Berkley Riverfront Hotel - I believe it was mentioned on this forum before, but not sure.
Pulse Development: West Port Terrace project includes a 120 hotel room portion.

I'd consider 3/4 (Berkley being the exception) as presently dead.

So the unknowns are the AC Hotel and Microtel in Downtown.

Posted: **Wed Jan 27, 2021 12:08 am**

Would be huge vote of confidence in downtown KC if more hotels announced this year. Could reduce risk if combined with a residential tower. However increases risk for existing downtown stock.

Some interesting AC Hotel designs in Australia..

180 rooms, 8 floors of a 28 floor office building in Orlando..

Posted: **Wed Jan 27, 2021 9:34 am**

earthling wrote: ↑Wed Jan 27, 2021 12:08 am Would be huge vote of confidence in downtown KC if more hotels announced this year. Could reduce risk if combined with a residential tower. However increases risk for existing downtown stock.

Some interesting AC Hotel designs in Australia..

180 rooms, 8 floors of a 28 floor office building in Orlando..

Cambria moving forward is another big positive.

Posted: **Thu Jan 28, 2021 2:18 pm**

Collison on the AC hotel at 9th/Grand, not timeline on when. Residential might be a better use.

https://cityscenekc.com/historic-ozark- ... ventually/

A Little Rock hotel developer has bought the historic Ozark building at Ninth and Grand and plans to ultimately redevelop it as a 240-room AC Hotels by Marriott at some point in the post-pandemic future.

Posted: **Thu Jan 28, 2021 2:38 pm**

earthling wrote: ↑Thu Jan 28, 2021 2:18 pm Collison on the AC hotel at 9th/Grand, not timeline on when. Residential might be a better use.

https://cityscenekc.com/historic-ozark- ... ventually/

A Little Rock hotel developer has bought the historic Ozark building at Ninth and Grand and plans to ultimately redevelop it as a 240-room AC Hotels by Marriott at some point in the post-pandemic future.

I started a separate thread on this building.

viewtopic.php?f=15&t=21110

Posted: **Thu Mar 11, 2021 3:27 pm**

This compares 2020 revenues per available room (RevPAR) to 2019. KC metro 2020 revenue about 46% of 2019, while poor still relatively better than Midwest peer markets. Most southern markets did better for various reasons. As expected large urban centers and event/biz travel dependent cities didn't perform as well as smaller markets with higher % of Interstate traveler hotels.

https://www.cbre.us/research-and-report ... ent-Crisis

Posted: **Tue May 11, 2021 12:17 pm**

CBRE Q1 national hotel report. KC doesn't stand out as either struggling or recovering well. Mid-sized red cities seem to be recovering best probably given they are allowing broader events. Some blue bigger cities struggling to recover perhaps because still tighter restrictions for events and biz travel not entirely back. Economy to midscale hotels still recovering best.

https://www.cbre.us/research-and-report ... es-Q1-2021

Posted: **Sat Jun 26, 2021 11:52 am**

Sheraton Crown Center reopens, challenges with staffing. Surprised the article doesn't mention downtown/metro occupancy, a basic key piece of info.
https://www.bizjournals.com/kansascity/ ... opens.html

And biz travel including professional meetings/events could take years to recover...
https://www.bizjournals.com/kansascity/ ... overy.html

And while leisure travel is expected to bounce back to its pre-pandemic levels by 2023, according to the forecast, it will take business travel at least until 2024 to get back to 2019 spending.

Posted: **Sat Jun 26, 2021 4:11 pm**

I think business travel will take time because companies are greedy and have seen results without the expense. I was talking to an Royals executive a few days ago and I brought up the TV networks that are still having talent do the away games remotely. I asked him if that's going to become the norm considering these networks can save millions by not providing air travel, hotel and per diem for example. He thinks they might try that method.

Posted: **Wed Jun 30, 2021 2:31 pm**

Found a local hotel report. Metro only, doesn't break out downtown. The report also includes list of recently completed/constructing/proposed hotels.

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

KC and STL metros doing a bit better than Midwest average in RevPAR (revenues per room) "index" recovery than rest of Midwest but below US average. The largest markets that have higher % on biz travel/conferences furthest behind.

Other Midwest reports. KC exceeds rest of Midwest (excluding Chicago) in recently completed to proposed hotel projects. How many actually complete is questionable but developers are clearly hot on KC right now.
https://www.ngkf.com/storage-nmrk/uploa ... eports.pdf

Posted: **Wed Jun 30, 2021 4:08 pm**

Traveling Youth Sports leagues and constant supply of tournaments might save the hotel industry, these sports leagues keep growing

Posted: **Wed Jun 30, 2021 4:11 pm**

^But is there more of that than before COVID, more than enough to offset down biz travel/events, which may take years to recover.

Posted: **Thu Jul 01, 2021 5:08 am**

The same report also tracks number of hotel rooms per Midwest market.

Approx number of available hotel rooms as of Q1 2021 / Rooms in pipeline
Chicago 120,000 / >14,000
MSP 44,000 / >3,000
Detroit 43,800 / >4,000
STL 39,800 / >4,000
KC 35,600 / >10,000
Indy 33,200 / >6.000
Cincy 30,000 / >4,000
Columbus 29,500 / 4,000
Cleveland 23,300
Milwaukee <18,000

Second number shows rooms in pipeline after Q1. With over 10K rooms in pipeline KC far exceeds other Midwest markets except for Chicago, though most may not happen for a while in any market. Even if most don't happen, it's a signal of developer interest/confidence in KC market over other Midwest markets. If most happen, back to the question if KC is overbuilt. Not if it can get back to and sustain over 60% occupancy.

Posted: **Fri Jul 09, 2021 8:12 am**

I have been impressed by how busy some of the larger downtown hotels have been this summer. I am starting to think that another “large hotel” would only help us attract even more events boosting existing hotels as much as filling a second new large hotel. A Hyatt or Hyatt Regency would be good to have here. I can see one going in south of the Loews, north of Waddell Reed, or at Four Light.

Posted: **Fri Jul 09, 2021 8:32 am**

^Sheraton with over 700 rooms just came back online recently so might alter the downtown occupancy rates and perception. Are there any other downtown hotels still closed?

BTW, if all the KC and STL metro hotel rooms in pipeline happen (not likely for a while), KC would pass STL in hotel rooms. Though older hotels may close in process so hard to say how chips would fall. The development interest/confidence in KC is impressive either way.

Posted: **Sat Jul 10, 2021 4:33 am**

An important factor of this is about the World Cup. One of the most important qualifications for us getting a World Cup is whether KC (or any city) has the hotel capacity to handle a World Cup crowd. So if these numbers are true and can be done by summer of 2026 then that could be a huge huge plus for our bid.

Posted: **Sat Jul 10, 2021 8:22 am**

earthling wrote: ↑Fri Jul 09, 2021 8:32 am ^Sheraton with over 700 rooms just came back online recently so might alter the downtown occupancy rates and perception. Are there any other downtown hotels still closed?

BTW, if all the KC and STL metro hotel rooms in pipeline happen (not likely for a while), KC would pass STL in hotel rooms. Though older hotels may close in process so hard to say how chips would fall. The development interest/confidence in KC is impressive either way.

I think all major hotels are open. Aladdin Holiday in closed of course. Sheraton and Weston could really use renovations. Not top tier hotels anymore.

Having a large hotel of high quality next to P&L and the convention center was a major factor when a friend was working to bring his industry association convention to KC later in the 2020s.

Other poster brings up a good point. We are missing a Hyatt presence in downtown KC. This 600 room Grand Hyatt in Nashville would fit in well south of the Loews. Hilton could also use a modern facility.

Also like the 600 room Cleveland Hilton Downtown design.

Posted: **Sat Jul 10, 2021 8:38 am**

^Meeting/event planners have various criteria and it's typical as expected to desire as many rooms as needed near convention center or event space but one thing that sets KC apart from pretty much all other markets is having a free streetcar that operates more like a horizontal elevator that's easy to hop on/off, literally integrated into the sidewalk.

Visitors figure this out quickly and meeting planners can point this out on their event website so this will allow new hotels to cluster directly along streetcar line further away rather than having to cluster around event spaces. Might see more hotel proposals of any size along Main in Midtown, Riverfront, maybe NKC, but maybe at the expense of others. Will be interesting to see how this plays out over this decade.

Posted: **Sat Jul 10, 2021 9:44 am**

earthling wrote: ↑Sat Jul 10, 2021 8:38 am ^Meeting/event planners have various criteria and it's typical as expected to desire as many rooms as needed near convention center or event space but one thing that sets KC apart from pretty much all other markets is having a free streetcar that operates more like a horizontal elevator that's easy to hop on/off, literally integrated into the sidewalk.

Visitors figure this out quickly and meeting planners can point this out on their event website so this will allow new hotels to cluster directly along streetcar line further away rather than having to cluster around event spaces. Might see more hotel proposals of any size along Main in Midtown, Riverfront, maybe NKC, but maybe at the expense of others. Will be interesting to see how this plays out over this decade.

Yes the streetcar works wonderfully for that today. However, even with just one large event (convention or not) going on during a weekend it’s pretty much near capacity all day long. Higher capacity vehicles and higher frequencies will be needed. IMHO, if we ever do a regional plan I say coupled vehicles or just longer singular vehicles are needed. Maybe even a Grand or Broadway line through downtown for regional trains.

Posted: **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. Also good backup for major streetcar issues as buses can be detoured or go around issues.

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