Quote:
Originally Posted by UTPlanner
I can't say exactly where it is as I do not believe they have closed on the property yet. I would hate to create a issue with acquiring the land. It is close to the Salt Palace and is a very under utilized piece of ground at the moment. Once it's a bit further down the pike I would be happy to share it with you all.
I do have to say that there is so much hotel talk downtown. There are so many proposed at the moment that I have a hard time believing that they can all be built. It will be interesting to see which projects move forward and what sort of impact the proposals have on companies bidding for the convention center hotel.
|
I wanted to hit on this section for a bit.
The CCH is a different market than the other hotels that are planned. Also, boutique hotels by their nature are more of a niche and not tied to the same metrics as govern other hotels.
As before, Salt Lake has seen increased hotel development and plans. This year, Salt Lake has seen hotel occupancy increase to its highest levels ever.
This is with continuing to add additional space. When the last hotel opened (SW Corner of 1st S and 3rd W), the space was immediately absorbed and had no effect on the occupancy rates.
With Salt Lake City proper averaging over 80% occupancy and topping out at 100% occupancy multiple times this year, even outside of Outdoor Retailer, this shows that there is demand for more rooms.
Further, the Convention District itself has a higher occupancy rate than the City.
With over 7,000 hotel rooms in the city, with all numbers staying the same, Salt Lake could add 700 rooms (10% additional rooms) to the market currently and depending on where you are looking - City Proper or Convention District, the occupancy rates would still be between 70% and 77% respectively.
There is a strong demand for additional hotel rooms currently that is far from being met.
The CCH isn't something that fully affects the Occupancy rate as it is an inducer. This means that having a CCH induces more and larger conventions to the market which drives additional hotel occupancy at the surrounding hotels.
Finally, with the known hotel plan count, AUC, Regent, etc. that are planning or set to open this year to early next, we are still under the 700+ rooms that can be supported without a CCH currently.
The only question that is unknown is will this level of conventions and visitors continue to keep the hotel occupancy rates going up as they have been while also absorbing the additional rooms as they become available.