HOUSTON—In a session last week at the Lodging Conference, Let's Talk Development, panelists discussed the number of hotel properties affected by the latest disasters, including Harvey, Irma, Maria, the Mexico earthquake and the Northern California wildfires, in addition to current hotel market dynamics and economic environment. Moderator Michael Desiato, president, MGD Consulting Services, discussed all things hotel development with Janis Cannon, senior vice president, upscale brands, Choice Hotels International; Chris Drazba, vice president, core brands and Mexico development for the Americas, IHG; Chip Ohlsson, executive vice president and chief development officer, Wyndham Hotel Group; and Jon Wright, president and chief executive officer, Access Point Financial Inc.
Ohlsson said Wyndham has 600 properties in the hurricane and earthquake zones, and all properties stayed open. Cannon said Choice Hotels didn't have any buildings impacted in the hurricane zone but had 16 properties in the fire zone. Drazba said IHG has 300-plus hotels in the hurricane zone but no significant damage. In a later session at the conference, Ben Brunt, principal and executive vice president, acquisitions and development, Noble Investment Group, said the hurricanes will escalate prices and there is already an inordinate amount of hotel supply in Houston.
The hotel development group then discussed whether there is optimism or concern about the hospitality financing market going forward, and what is resonating with hotel travelers across the country.
“Money is cheap but some people are waiting until the political uncertainty passes,” Ohlsson said. “Business travel is strong but banks are wondering if we are at the end of the cycle.”
Cannon and Ohlsson said extended-stay hotels are popular in the Midwest and the Rust Belt cities of Cleveland and Detroit.
HOUSTON—In a session last week at the Lodging Conference, Let's Talk Development, panelists discussed the number of hotel properties affected by the latest disasters, including Harvey, Irma, Maria, the Mexico earthquake and the Northern California wildfires, in addition to current hotel market dynamics and economic environment. Moderator Michael Desiato, president, MGD Consulting Services, discussed all things hotel development with Janis Cannon, senior vice president, upscale brands, Choice Hotels International; Chris Drazba, vice president, core brands and Mexico development for the Americas, IHG; Chip Ohlsson, executive vice president and chief development officer, Wyndham Hotel Group; and Jon Wright, president and chief executive officer, Access Point Financial Inc.
Ohlsson said Wyndham has 600 properties in the hurricane and earthquake zones, and all properties stayed open. Cannon said Choice Hotels didn't have any buildings impacted in the hurricane zone but had 16 properties in the fire zone. Drazba said IHG has 300-plus hotels in the hurricane zone but no significant damage. In a later session at the conference, Ben Brunt, principal and executive vice president, acquisitions and development, Noble Investment Group, said the hurricanes will escalate prices and there is already an inordinate amount of hotel supply in Houston.
The hotel development group then discussed whether there is optimism or concern about the hospitality financing market going forward, and what is resonating with hotel travelers across the country.
“Money is cheap but some people are waiting until the political uncertainty passes,” Ohlsson said. “Business travel is strong but banks are wondering if we are at the end of the cycle.”
Cannon and Ohlsson said extended-stay hotels are popular in the Midwest and the Rust Belt cities of Cleveland and Detroit.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
