06.09.16

Grow It! Buy. Build. Convert. Adapt

DENVER—A panel of industry experts shared their perspective on the current trends of new-builds, conversions and adaptive-reuse projects during the 2016 Hotel Business Executive Round-table—“Grow It! Buy. Build. Convert. Adapt. What’s Trending Now?” held at the RLHC office here on May 11.

The roundtable was cohosted by RLHC (Red Lion Hotels Corporation) and Commonwealth Hotels, LLC. Arthur J. Gallagher & Co. Real Estate and Hospitality Services, ProfitSword, LLC and Simmons Hospitality Bedding sponsored the roundtable. Stefani C. O’Connor, executive news editor, Hotel Business, and managing editor/roundtables, served as moderator.

While financial insiders have expressed pessi-mism regarding the construction outlook of the hospitality industry, a number of hotel operators have shared their optimism, according to Bruce Baltin, SVP, CBRE Hotels/Americas Research. And, as some markets in the U.S., such as New York City and Houston, have experienced develop-ment challenges, others—like some in the state of California—have been prospering.

“Right now, there is financial opportunity for select-service,” said Baltin. “It’s become tougher to develop full-service hotels, but select-service ho-tels limit group business. I think we need more of a balance of both full- and select-service.”

To provide consumers with that balance, some hoteliers are turning to “hybrid select-service” models, according to the panelists. “We’re de-veloping select-service hotels with enhanced F&B and significant meeting space, along with high-concept bars,” said Brian Fry, president of Commonwealth Hotels. “Decisions vary upon each market and ownership needs. Both full- and select-service hotels have value depending on who the customer is.”

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