Hotel Boom

[Plutonic Panda]

Checking into OKC: More than 3,600 hotel rooms planned in next three years | The Journal Record

[Laramie]

Plutonic Panda:

Didn't get a chance to read the entire article (non journal subscriber). Does the 3,600 rooms planned include the anchor hotel for the new convention center complex?

It's will be of interest to see what type of development proposals come about with the convention center hotel piece.

[warreng88]

Here you go:

Checking into OKC: More than 3,600 hotel rooms planned in next three years

OKLAHOMA CITY – Downtown, S. Meridian Avenue and W. Memorial Road are all seeing hotel growth, and that trend is expected to continue for the next few years.

Oklahoma City has 3,699 rooms slated for construction from 2015 to 2017, according to Lodging Econometrics, an industry consulting firm. Eleven projects are under construction, 12 are slated to start in the next 12 months, and 10 projects are in the early planning phase, as seen in the firm’s data.

Oklahoma City Convention and Visitors Bureau President Mike Carrier would like to see more hotels in the city’s northeast corridor, near Adventure District attractions such as Remington Park and the Oklahoma City Zoo. He said the city could use 8,000 to 10,000 additional full-service hotel rooms, which also bring meeting spaces.

“We have a huge deficit in terms of meeting space that the (MAPS 3) convention center and hotel will help to offset,” Carrier said.

Full-service hotels offer services such as bed turndown, newspaper delivery, security guards, wake-up calls, room service and a shuttle to and from an airport or other nearby attractions.

A limited-service hotel’s rooms tend to appeal to leisure travelers. Room amenities include microwaves and mini-fridges, as well as cable TV and Internet, but extras such as room service are not available because the staff is smaller.

The convention center and hotel will add to the room count downtown, where Carrier said there are plenty of limited-service hotels, but the entire city lacks a balance between full- and limited-service hotels. But overall, Carrier said, downtown hasn’t reached saturation. The CVB reports 2,058 beds in downtown.
Hotel Broker One Chief Operating Officer Peter Holmes agreed that downtown hasn’t reached its max, but it’s getting close.

“I would say within the next 12 months we will have reached saturation,” he said. “With what’s slated to open in 2015, my belief is that we’re probably going to see some cannibalization of other properties. I think it’s inevitable.”

Holmes has brokered transactions in 12 different states this year and said Oklahoma City’s market is one of the healthiest in the country. He said there is some concern nationally that the city could become overbuilt. He expects to see more growth near W. Memorial Road where Chisholm Creek is being built. Cabela’s and Topgolf will be anchors at Chisholm Creek, in addition to the $22.3 million St. Anthony Healthplex on the site. In addition, there is the Main Event Oklahoma City entertainment complex at 1441 W. Memorial Rd.

“That area is shaping up nicely to bring people in from out of state,” he said. “Topgolf has a high percentage of guests that stay overnight in the market. We think that’s going to be a huge demand generator.”

Though Holmes has worked out of state, he also oversaw sales in Oklahoma City. It’s been a busy year for his firm in Oklahoma City, and there are still sales that could close before year’s end.

“There’s been a real influx of out-of-state investors, this year perhaps more than any other year,” he said.

He expects that trend to continue into 2015.

“Most of the markets we don’t see any reason to be anything but bullish,” Holmes said.

[BoulderSooner]

Very much disagre with his coment about downtown saturation. Still tons of room for hotel growth down town. Now if I was a hotel in the burbs I might be worried

[Pete]

This will be pretty self-correcting because if and when saturation occurs, the cheapo properties will have to lower their rates.

But as it is, occupancy rates are very high downtown and there are no huge blocks of rooms coming, just more of the steady 100 to 200 room facilities that seem to be easily absorbed.

The convention hotel would be the only real big boy but of course, that would be attached to the new convention center which will feed it plenty of business.

[Rover]

For a city our size and with growing business in O&G and bio-med, we are woefully lacking of quality high end full service hotels downtown.

[bchris02]

What is missing in OKC that most other cities have is a large, name brand convention hotel (Omni, Westin, Marriott, etc). Hopefully OKC does land such a hotel as part of the convention center deal. OKC's current largest hotel, the Sheraton, will be completely dwarfed by the CC hotel when/if its built.

[ljbab728]

What is missing in OKC that most other cities have is a large, name brand convention hotel (Omni, Westin, Marriott, etc). Hopefully OKC does land such a hotel as part of the convention center deal. OKC's current largest hotel, the Sheraton, will be completely dwarfed by the CC hotel when/if its built.

The Biltmore used to list a room count of 506 rooms but they show a total of 367 rooms now.

[HOT ROD]

im hoping we can get a two for one deal with the CC (two national flags) since it is a complex and will be attached. May as well have some competition and give conventioneers a choice while also segmenting the rooms so the market doesn't overheat. Also hoping that Clayco will build a hotel with a national flag and perhaps the Bricktown Marriott is still in play?

If so, that could be 4 national flags downtown to add to Sheraton, Renaissance, and Hilton. Would be nice if the 4 flags would be Marriott, Hyatt, Omni, and Westin. Then OKC would be represented moreso like its peer competition in Tier II.

[bchris02]

The Biltmore used to list a room count of 506 rooms but they show a total of 367 rooms now.

The Biltmore that was destroyed in the Pei Plan or the one out on Meridian and I-40?

Here is the Westin convention center hotel in Charlotte. This is similar to the quality and scale that OKC needs in its convention center hotel.

[ljbab728]

The Biltmore that was destroyed in the Pei Plan or the one out on Meridian and I-40?[/IMG]

I40 and Meridian.

[Urbanized]

Pei proposed retaining the Biltmore, FWIW.

[HOT ROD]

Pete's chart brings up an interesting point, a lot of the hotels we have actually are full service. That chart's assumption is if it has room service and/or a hotel shuttle then it is full service. However, when i rank hotels I tend to do them as Luxury, Full Service, Boutique, Leisure/Limited Svc, Extended Stay, and Budget (and perhaps a lower category, such as motel).

Given this, I'd re-rank OKC's downtown hotel summary as follows:

CBD Sheraton Hotel ...........1977.........Full Service .....................Highrise ...395
CBD Renaissance Hotel .....1999 ........Full Service/Near Luxury .Highrise ...311
CBD Hilton/Skirvin Hotel .....2007 ........Luxury .............................Midrise .....225
CBD Courtyard Hotel ..........2003 ........Leisure ............................Midrise .....225
CBD Colcord Hotel ..............2006 .........Boutique .........................Midrise .....108
CBD Westin Hotel* ..............2018 .........Full Service/Near Luxury .Highrise ..........................................450
CBD Omni Hotel* ................2019 ........Full Service ......................Highrise ...........................................650
CBD Hyatt Hotel/Clayco** ...2017 ........Full Service ......................Midrise .............................................300
CBD Totals Comp 1264.........U/C 1400............Prop 1400...............Total 2664 (Highrise 1806, Midrise 858)

BT Hilton Garden/Homewd .2014 ........Leisure/Extended Stay .....Midrise .....255
BT Hampton Inn & Suites ...2008 .........Leisure .............................Midrise .....200
BT Residence Inn & Suites .2006 .........Extended Stay .................Midrise .....151
BT Holiday Inn Express ......2015 .........Leisure .............................Midrise ..................124
BT Hyatt Place ....................2017 ........Full Service .......................Midrise ...........................................150
BT Canopy Hilton ................2016 ........Boutique ...........................Midrise ...........................................150
BT Staybridge Suites ..........2016 .........Extended Stay ..................Midrise ...........................................131
BT Springhill Suites ............2016 .........Extended Stay ...................Midrise ...........................................126
BT Marriott Hotel*** ............2017 .........Full Service .......................Midrise ............................................300
BT Totals Comp 601..............U/C 124 .............Prop 857.................Total 1582 (includes 300 from me)

DD Aloft Hotel ......................2014 ........Leisure ..............................Midrise .....130
MT Ambassador Hotel .........2014 ........Boutique ............................Midrise ......55
FR 21 C Museum Hotel .......2015 ........Boutique ............................Lowrise .................135

OHC OK Kids Korral .............2013 ........Extended Stay ..................Lowrise ......16
OHC Embassy Suites ...........2015 ........Leisure .............................Midrise ..................194
Totals Comp 2066 ...........U/C 452 ..........Prop 2257 (including 600 I added) = 4775 hotel rooms

Luxury 225
Full Service 706 1700(inc 600 I added) = 2406
Boutique 448
Leisure 810 318 = 1128
Extended Stay 167 257 = 424
Budget 0
Motel 0

Looks like OKC could use another Luxury hotel or two (bringing it up to say, 500 rooms), the two Full Service flags I added (600 rooms total) in addition to the Convention hotels I propose, and even some presence in Budget and Motel. Although we don't want much of these lower end, every downtown has some budget and motel options. I think 100 of each is healthy. We could perhaps use a full service hotel in the OHC and perhaps another extended stay option (total of 710 rooms, perhaps), perhaps a few boutiques in AA, DD and MT, a full in MT, budget/hostels in MT, FR, DD. Motel in AA, E BT.

Under my proposal, we'd have very healthy downtown market (Greater DT incl OHC with say 6000 rooms) with all classes/price ranges of hoteling options covered.

[mugofbeer]

Pei proposed retaining the Biltmore, FWIW.

I was a kid when I saw it come down but I seem to recall it was packed with asbestos

[Urbanized]

Of course, so did the Skirvin. For the Biltmore the factors leading to its demise were probably mostly timing and location. But the coup de grâce came via low ceiling heights, if you listen to the historians.

[ChrisHayes]

Isn't a new hotel supposed to be built at 40 and Meridian in the vacant lot?