Omaha beats other US metros in hotel growth
- The number of new rooms added to the Omaha, Nebraska, hotel market during the last five years has outdone the rest of the U.S., according to an Omaha World-Herald analysis of research firm STR's data. In that time period, the number of hotel rooms in Omaha has increased by 16% versus 7% nationwide.
- Room revenue alone, a figure which excludes food and beverage sales, is up 27% in the first six months of 2018 compared to January 2013 to June 2013. The hotel occupancy rate in Omaha, however, is 62%, slightly lower the national average of 66%.
- Hotels under construction in the Omaha area include a $15 million, 105-room Marriott Moxy. According to the World-Herald, STR's figures do not include area hotels that are in the planning stages like the 300-room hotel planned for the 500-acre, $1 billion West Farm mixed-use development
The U.S. hotel construction pipeline, according to Lodging Econometrics, continues to grow with some help from a healthy economy. The second quarter of 2018 was the fourth quarter in a row that saw rooms under construction exceed 200,000, and those projects in the early planning stages increased 25% from the second quarter of 2017.
But just where are the top markets for hotel construction right now? New York City is leading the way with 17,108 rooms under construction, followed by Dallas (6,350 rooms), Nashville (7,005 rooms), Houston (4,738 rooms) and Atlanta (3,387 rooms).
The second quarter also saw some new hotel project announcements, and contractors in Nashville (13 new projects; 1,351 rooms), Los Angeles (12; 1,845), New York City (11; 1,075), Houston (11; 909) and Dallas (10; 1,229) should be busy for some time to come. Total hotel projects in the pipeline are 169 in New York City (29,365 rooms); 156 in Dallas, (18,908); 150 in Houston (16,321); 123 in Nashville (16,392) and 121 in Los Angeles (18,037).
Those developing and building hotels in New York City, according to The Real Deal, could be facing a new zoning challenge soon. Mayor Bill de Blasio's administration is leaning toward adding an extra step to the permitting process by requiring that the city council review permits for buildings planned in areas zoned for light manufacturing. Hotel construction already takes longer in New York City than other building types and having to win an extra city approval will likely add more time to the schedule. The city is considering the move become some officials contend that development in industrial areas is pushing out high-paying manufacturing jobs.
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