One of the most important things hotel owners/franchisees need to know is their market. Specifically, how it is performing as a whole in regard to ADR, occupancy and total RevPAR. Are they getting their fair share? What are the opportunities to expand or grow business?
For prospective hoteliers, seeking to, perhaps, open a new hotel or acquire an existing property, it's equally vital to understand the fluidity of the market in question.
Two of the best tools for doing so are STR and Lodging Econometrics data.
Hotel Management has started a series of market snapshots, honing in on a particular U.S. city to see what is going on. Today: Portland, Ore.
WHAT'S GOING ON
Portland goes by so many names these days: Rip City, The City of Roses, to name a couple. And “Keep Portland Weird” continues to be its battle cry while shows like IFC’s “Portlandia” ups its popularity. The hotel industry has taken note and demand for rooms there continues to rise. According to STR, Portland’s major metrics are all up year-over-year. Year-to-date November 2014, occupancy in Portland stood at 73.5 percent, ADR was $115.73, which combined to give a RevPAR of $85.02. Demand is also on an incline: In November alone, the city sold 515,776 rooms—a 6.7-percent bump over the same time last year. Year-to-date November, Portland has sold more than 6 million rooms total. This is in part due to Portland’s hip mix of hotels, which includes the Ace Hotel (pictured), Hotel Lucia and Hotel Modera.
According to Lodging Econometrics, the Portland area (central business district and immediate suburbs, including airport and Vancouver, Wash.) has a total of 247 hotels representing 25,738 rooms as of Q2 2014. Of that total, the largest segment represented is independent hotels, with 68 (5,003 rooms). On the other spectrum, the city, according to LE, only has one luxury hotel. The vast majority of new hotel supply will open in 2017 and beyond: seven properties totaling 1,068 rooms. As of Q2 2014, the Portland area’s total construction pipeline stands at 11 projects, totaling 1,523 rooms. The majority of these projects are in the upper-midscale space.
◾ Hampton Inn & Suites (Hillsboro, Ore.; 106 rooms; 2014)
◾ Candlewood Suites (Vancouver, Wash.; 85 rooms; 2016)
◾ Independent Hotel (Portland; 300 rooms; 2017)
Stay tuned for more market snapshots as move along in 2015. And if there is a particular city you'd like to see investigated, give me a shout at [email protected].