Hotel Demand Remains Strong for North Harris Co.

SPRING, TX—High hotel gains of 7.9% occurred in Houston, still recovering from Hurricane Harvey. The metro also had high RevPAR gains of 9.2%, according to CBRE Hotels research. These metrics are at work with the planning of new hotels and hospitality projects.

An example is Springwoods Village, a $10 billion 2,000-acre sustainable master-planned community coming to life in Spring, just south of the Woodlands and 20 miles north of downtown. Located at the confluence of Interstate 45, the Hardy Toll Road and the Grand Parkway, the community is a new model of sustainability for the region, preserving its natural ecosystems, building energy-efficient homes and reducing auto dependence by providing a walkable mix of retail, dining, offices, hotels and public amenities.

Houston Marriott CityPlace in Springwoods Village is also under construction and scheduled to open in early October 2018. The 10-story 337-room property will be the first full-service hotel within the North Houston master-planned community and the third hotel Woodbine Development has developed for the area. Woodbine is the developer and the asset manager, and Aimbridge Hospitality serves as the management company for the hotel. Gensler is the architect and interior designer, and Austin Commercial is the general contractor.

Houston Marriott CityPlace will serve as the eastern end of CityPlace, a 60-acre mixed-use district in Springwoods Village, facing CityPlace Park and next to the public CityPlace Plaza. CityPlace, which will offer 4.4 million square feet of office and retail space within Springwoods Village, is being developed by a master development venture of Patrinely Group, USAA Real Estate Company and CDC Houston.

In addition to Marriott signature elements such as MClub Lounge, Great Rooms, Great Room Bar and Grab N Go, the hotel will also include a restaurant, Switchouse. There is a pool, pool bar and spacious outdoor patio and event space. The hotel will also have 33,000 square feet of indoor/outdoor function space, including a grand ballroom, a junior ballroom, five meeting rooms, three boardrooms, a pool bar event space and access to The CityPlace Plaza, an outdoor event area.

The design of Houston Marriott CityPlace at Springwoods Village has been developed with the goal of pursuing LEED Gold certification, reflecting Springwoods Village's commitment to sustainable development and conservation. Houston Marriott CityPlace will be inspired by the meandering paths, forest trails and flowing creeks of the surrounding Springwoods Village community. The interiors will feature a mix of stone, tile, wood, metal and textured fabrics in natural and earthy hues—paired with upscale furnishings, fixtures and finishes.

Guests will be able to enjoy the community's natural assets, including more than 290 acres of parks and natural corridors that connect to a network of trails. The nearby 150-acre Springwoods Village Nature Preserve is an ecologically rich experience with a forest habitat, wetlands and pond, and will eventually become part of the greater 46-mile Spring Creek Greenway.

Aimbridge Hospitality recently announced the appointment of Mark Sampsell as general manager of Houston Marriott CityPlace in Springwoods Village. Sampsell has more than 20 years of hospitality experience and most recently served as the general manager of the Embassy Suites Houston West–Katy. In his new role, Sampsell will oversee the completion of the Houston Marriott CityPlace construction and its operations once the hotel opens.

“With HP campus and ABS headquarters nearing completion in October, Springwoods Village is becoming a major employment center in north Harris County, stimulating a new hotel submarket in the area,” Sampsell tells GlobeSt.com. “Houston Marriott CityPlace will be the first full-service hotel in the community, fulfilling on the strategy to provide a range of hotels at different price points and with different levels of service, all within walking distance to work, dining, retail and recreation facilities.”

National hotel demand grew 3.1% in second quarter 2018, up from the 2.9% rate in the first quarter. Supply growth remained at 2%, according to CBRE Hotels second quarter 2018 report.

Moreover, occupancy rose by 1.1% year-over-year, continuing a growth trend in quarterly occupancy to record levels. National ADR grew by 2.9% in second quarter, the fastest growth since third quarter 2016. RevPAR grew by 4% year-over-year in second quarter, a faster pace than a year ago.

Of the 60 markets tracked by CBRE Hotels' Americas Research, 37 had supply gains of more than 2% in second quarter, higher than in first quarter, however, 19 markets had declines in occupancy, 12 fewer than in first quarter. An impressive 10.1% increase in ADR gave San Francisco the largest increase in RevPAR (10.4%) in second quarter.

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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.