by Alan Campbell, Featured Contributor
The panel has spoken:
IT SEEMS that 2015 and 2016 could be, (the operative word here is could be), and some of the best years for the hotel industry (Hunter Investment Conference) some of the other concerns were the interest rates and the concern of oversupply. It goes in hand when things look good full steam ahead, well I would like to know who determines when over supply is around the corner. Did we not over supply already once? Where were the breaks for that fiasco? The contention is that at least two years of growth for the industry, and after that it is up to those in the know to forecast the following years. Well maybe, I have seen this type of hurry up and build while money is available. Yes it might be smart money as the banker say, but were was the smart money the last time?
I am all for a better economy, but not at the expense of laid off workers, and bankrupt business. We all have to seek a happy medium in entering a market that is already saturated. Just because there is piece of real estate that would support a new hotel property, does that mean we build a hotel? Your marketing report tells you that the area at this time would not properly support another hotel. I have seen the developer go ahead and build one on the advice that his property would do well, due to the fact that it is new. Here in Las Vegas, a Hampton Inn, and a Marriott went up right next to each other. Hampton Inn was first to go up and open, It did very well since it was the only one in the area. A year later Marriott opens in the same circle, now both hotels are struggling. Both companies want the proverbial pie.
Consumer spending has improved, and as long as the public takes vacations things will be ok. Consumers are a fickle bunch as long as it benefits their needs it will continue. They will look for the best deal they can find, I don’t blame for that after all it is their money they are spending. PKF Hospitality feels that next year will be the best years for the industry. Let’s hope that all of these predictions will bear fruit in the next year or so. Travel Click reports a 4.2% increase in group business over the previous years. It does show a rebound in this segment of the industry.
Since we are talking about hotels and building new ones, well here is a project that I have been involved in. Just so you can understand the complexities of getting a historic landmark turned in to a 5 star hotel eventually. We have spent over a year with the city fathers, as well as county officials getting the proper permits, licenses and a host of other permits. We have been in constant contact with the historical society as to what we are able to do. Financing is in place, and has been for over a year. The hotel will be called the Chesterfield Hotel, Pending name search and permissions. Remember Chesterfield cigarettes? The building a now vacant Spanish hacienda monastery will have 150 suites type rooms. All will have a sitting area with a separate bedroom area. They will come with the latest amenities to configure a 5 star rating when so graded. There will be a restaurant open to guest only, maybe later to the public. It will boast a spa, as well as a social center and a lounge facing the water. Yes there will be a gym, for those that like to work out. Of course as we get in to the project things could change.
If all goes well the project trailer should drop on site by June. For those that hate small bathrooms, wait till you see the renditions of the bathrooms that are being considered for this place. I’ll keep you all updated as progress continues.