IT IS TIME TO BE OPTIMISTIC
While post-recession uncertainty still persists and many impending economic
issues (spending cuts and the debt ceiling) have been left unsettled, 2013
is opening with increasing investor interest. There is reasonable job creation,
the stock market is strong due to increasing corporate profits, the housing
market is showing signs of turning around and investor interest in the hospitality
industry is second only to the multifamily sector. Deal flow is accelerating
and with improved operations, access to capital and low interest rates it
is expected to do nothing but gain speed.
• Demand is at record levels (91.7 million rooms sold in December)*
• Demand increases will continue to be greater than Supply (1.8% vs. 1.0% in 2013
and 2.8% vs. 1.5% in 2014)*
• Financing is loosening with options such as SBA 504 and 7a plans, institutional
lenders in major markets and local banks are opening up to more hospitality loans
• Average Daily Rate will drive growth (4.9% increase in 2013 and 4.6% in 2014)*
• Expected Leveraged Internal Rates of Return are in the upper-teen’s
• Opportunities exist in properties with extensive PIP lists, those needing reflagging
and the slowing of ‘extend and pretend’
During the recent NAI Global conference in Las Vegas we had the opportunity to visit
with hospitality investors and brokers from across the country. The one common theme
was that these favorable trends continue to fuel investor demand. If you are considering
a disposition, please let us know and we will provide you with a no-strings-attached
opinion of value and will work with you on how best to position your property for maximum
value. If you are looking to acquire, let us know your investment criteria and
through our hospitality practice group partners we will find what you are looking for.
Best wishes for a successful 2013 and if we can help in any way, please don’t hesitate
to give us a call.
Region Month OCCUPANCY ADR REV PAR
(% Chg/Prior Yr) (% Chg/Prior Yr) (% Chg/Prior Yr)
Wichita MSA Nov 54.00% -0.80% $83.12 0.60% $44.85 -0.10%
Wichita MSA Nov YTD 60.70% 0.80% $83.98 1.60% $51.00 2.40%
Total US Nov 56.50% 1.80% $104.63 3.50% $59.10 5.40%
Total US Dec 49.10% 3.20% $104.43 4.30% $51.22 0.70%
Total US Dec YTD 61.40% 2.50% $106.10 4.20% $65.17 6.80%
KANSAS OPENINGS, CLOSURES
The City of Wichita bought the Super 8 hotel at 527 S. Webb
Road for $4.1 million. The city bought the 119-room property as
part of its ongoing property acquisitions for the extension of Kellogg
to Greenwich Road.
The Ambassador Hotel opened in downtown Kansas City.
Wichita Inn East becomes a Super 8. The switch was made
after the Super 8 on the south side of Kellogg (mentioned above)
was purchased and closed by the city.
The Hilton Garden Inn opened in Olathe off of I-35 and 119th
The 80-room Fairfield Inn & Suites opened in Hutchinson
near 11th and Lorraine.
Holiday Inn Express opened next to the KU Medical Center
in downtown Kansas City.
The Best Western Plus Midwest Inn & Suites opened in Salina at I-135 and
Schilling Road. This was previously a Baymont Inn & Suites.
Cobblestone Inn & Suites opened in Anthony, Kansas. This new brand
opens hotels in small, under served markets, averaging 36 rooms.
The 150-room Hampton Inn & Suites attached to the Kansas Star Casino
opened in Mulvane. Future plans include opening an additional 150 rooms at
the casino site in 2014 or 2015.
Holiday Inn Express opened in Overland Park at I-69 and 135th Street.
The $22.5 million, 117-room Ambassador Hotel opened. The historic
14-story boutique hotel is located at the corner of Douglas and Broadway in
A Holiday Inn Express is expected to open in northeast Wichita next to the Staybridge
Best Western will open in Garden City on Kansas Avenue, just south of the Highway
Grubb & Ellis | Martens Commercial Group
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435 South Broadway | Wichita, KS | 67202
(p) 316 262 0000 | (f) 316 262 0235
A World of Local Knowledge.
Tom Johnson, CRE
Brian Klahr, MAI
State Cert. Appraiser (KS-MO)
Lee Z. Whyte, MAI
State Cert. Appraiser (KS-MO-CO-TX)
We know the hotel market in the Midwest and are
happy to share information, trends, insights and
more. If you are interested in receiving a free Broker
Price Opinion on your property, contact Jeff Walenta
at (316) 847-4925 or jwalenta@NAIMartens.com.
Sign up for our quarterly hotel e-brief at
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Some of the information contained herein has been gathered from sources deemed reliable however
NAI Martens makes no warranties or representations as to the completeness or accuracy thereof.