Hotel & Motel Management - September 3, 2007 - (Page 22)

22 Construction NORTHWEST PIPELINE H&MM September 3, 2007 | HotelMotel.com www.HotelMotel.com/digital_edition Costs present development challenges IN THE details Steady growth in region An estimated 50 new hotels are under construction or being converted to other brands in the ﬁve-state area of Oregon, Washington, Idaho, Montana and Wyoming. Costs continue to rise Development steady Limited urban openings IN THE works In fall 2007, 1111 Tower LLC will begin construction of the Four Seasons Hotel and Private Residences Denver, to be completed in winter 2009. The facility will boast 230 luxury hotel rooms and 102 private residences ranging from 965 square feet to 6,100 square feet. The hotel will feature a restaurant, ﬁtness center, spa, rooftop pool, and 16,000 square feet of meeting space. Choice Hotels International exceeded the 50-contract milestone for its Cambria Suites brand by completing its ﬁrst international franchise agreements in Toronto. The ﬁrst property will be a 134-room, 7-story hotel in Vaughan, Ontario; a second hotel will be in Waterloo, Ontario. In September 2007, Radisson Edwardian Hotels will open a fourstar deluxe, 169-bedroom hotel (Radisson Edwardian New Providence Wharf) in London’s Docklands. The hotel will include the East River Spa and Bar & Restaurant and a range of conference, meeting and banqueting rooms. InterContinental Hotels Group debuts plans for two Hotel Indigo developments in St. Louis. Set to open in October 2007, the 120-room property in the Central West End will be a conversion of the Inn at the Park. The second hotel, located downtown, will be part of a mixed-use development of retail and condominiums. The hotel is scheduled to open in spring 2008. Construction is under way for a 48-room Comfort Inn & Suites in Mesa, Ariz. It is scheduled for completion in November 2007. Compiled by Stacey Higgins, shiggins@questex.com By Dennis Blank CONTRIBUTING EDITOR W hile hospitality construction is not as aggressive in the northwestern part of the U.S. as it is in the Southeast, it continues to be a steady market for smaller properties. There are an estimated 50 new hotels under construction or being converted to other brands now in the ﬁve-state area of Oregon, Washington, Idaho, Montana and Wyoming. InterContinental Hotels Group in Atlanta said Kelly franchise owners have WYNDHAM about two dozen projects under way in those states. Overall, lodging construction in the U.S., according to the U.S. Census in May, is running 65 percent ahead of last year at a seasonally adjusted annual rate of $27.8 billion, compared with $19.5 billion in 2006. About 75 percent of the new openings this year are in suburban or highway locations and only 5 percent in cities, according to Lodging Econometrics. Mike Kelly, vice president of Vesta Hospitality’s Staybridge Suites Portland (Ore.) Airport hotel is undergoing a $1.6-million renovation, according to Rick Takach, president and c.e.o. of Vesta. franchise sales for the western region, Wyndham Hotel Group, said the majority of new properties in the region are brand conversions. New construction for most properties, which are averaging 96 guestrooms, is running at about $60,000 a key for the Wyndham brands, according to Kelly. In Seattle, Hilton Hotels Corp. is spending $3.5 million to renovate the 390-room Hilton Seattle Airport Hotel. That project, which includes work on the ﬁtness center and pool, will be completed in a year. At the same time, the $10 million renovation of the rooms and meeting areas at the Doubletree Seattle Airport Hotel is scheduled to be completed this year. Rick Takach, president and c.e.o. of Vesta Hospitality in Vancouver, Wash., said his company is midway into a $1.6 million renovation at the Staybridge Suites near the Portland Airport and $1.7 million at the Homewood Suites in Vancouver. “The markets are performing well, but there has not been a frenzy of building the last part of the permits and ﬁnancing,” said Alan Segal, team leader for new construction for the Wyndham Hotel Group. “In the last few years, costs for materials including concrete, steel, oil-based products, copper, wood and Sheetrock has increased by double digits.” As an example, he said that putting up a 100-room hotel in wood would have been about 25 percent less a few years ago, compared with a concrete block and wood plank building today. Because many building materials are now being imported from China and India because of decreasing U.S. supplies, Segal said that it is probable that prices will continue to increase. The outlook is even better for new hospitality construction over the next few years. “New openings in 2007 and 2008 should be comfortably absorbed now that economic trends have improved, but 2009 should begin to show wider supply over demand imbalances that will continue into the early years of the next decade,” said Patrick Ford, Construction pipeline The Northwestern region includes states found in both the Paciﬁc and Mountain regions of the United States Region In construction Final planning Planning Total Paciﬁc 167 67 402 636 Mountain 137 63 324 524 Source: Smith Travel Research/ TWR/ Dodge INTERCONTINENTAL HOTELS GROUP cycle,” Takach said. Hotel builders in the region are facing much higher building and labor costs. “Building new construction projects is more challenging today than it was 15 years ago due to the increased cost of land, construction, development fees, building president of Lodging Econometrics. “Now that the near-term recession is no longer likely, developers have turned exuberant once again and are moving at a quick pace while equity is widely available and ﬁnancing can still be attractively accessed.” hmm@questex.com NYLO Warwick NYLO Hotels broke ground on its inaugural property in Warwick, R.I. The hotel, in the historic multi-use community of Pontiac Mills, is due to open summer 2008. From left, Scott Avedisian, mayor of Warwick; Chris Jones, senior v.p. of development and construction, NYLO Hotels; Michael Mueller, president and chief development ofﬁcer, NYLO Hotels; and Hampton Hodges, owner, Pontiac Mills, break ground in Warwick. NYLO HOTELS http://HotelMotel.com http://www.HotelMotel.com/digital_edition

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Cover Contents Convention Centers Add Bells and Whistles Questex Media acquires Five Star Alliance Perspective At Your Risk Energy Star Update Sales Clinic Transactions Awards Trends & Stats Wireless Networking Northwest Pipeline Coffee Services Ad/Editorial Index Marketplace Classifieds Checking Out

Hotel & Motel Management - September 3, 2007

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