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.
Continuing its series on market snapshots, Hotel Management at one of the fastest-growing cities for hotel development: Nashville, Tenn.
WHAT'S GOING ON
Nashville is a city known for its music, a full-size reproduction of the Greek Parthenon and, now, high average daily rates and revenue per available room. STR reported that year-to-date November 2014, ADR for the city was up 12.9 percent, reaching $117.20, while RevPAR was up 18.9 percent over the same period in 2013, at $85.79. Nashville’s occupancy rate was also up 5.2 percent YTD November to 73.2 percent. Demand in the city was up 7.8 percent year-over-year, as the city sold 761,165 rooms in November. YTD as of November 2014, the city has sold more than 9.1 million rooms. As of November, Nashville’s hotel revenue was also on the rise, showing a heady 21.8-percent increase to approximately $1 billion.
A report from Lodging Econometrics shows that as of Q3 2014, Nashville has 328 hotels comprising 38,826 rooms. The city has 43 properties in its construction pipeline, which are expected to bring in 5,789 new rooms, with the majority of these properties (23) scheduled to open during or after 2017. Eight properties are expected to open in 2015 and 2016, adding 1,735 projected rooms to the city, in comparison to 2012 and 2013, which saw only seven new hotels with 1,911 rooms.
- Westin Hotel (100 Clark Place; 450 rooms; begins construction within the next 12 months)
- InterContinental Nashville (1600 West End Avenue; 285 rooms; begins construction within the next 12 months)
- Virgin Hotel Nashville (1 Music Row; 240 rooms; begins construction within the next 12 months)