Recently, I was able to attend the Lodging Conference in Phoenix. Perhaps one of the best industry conferences I have had the benefit of attending. Lenders, investors, brokers, designers, franchise flags, management companies, owners and developers all come together to meet once a year in a relaxed atmosphere where deals for the following year are set in motion.
Like all real estate projects the hotel industry is bound to the old adage of “location, location, location.” So, as we all drive around and we see an interesting parcel we must all be asking the same question “Is it a hotel site?”
Since the planning, purchase and development of a site takes several years site selection professionals need to have great insight into the area, its trends, demographics and direction. Some of the primary factors hotel site selectors look for when identifying potential sites are:
- Proximity to business activities;
- Proximity to tourist, sports and recreation activities;
- Proximity to colleges and universities;
- Proximity to entertainment venues (restaurants, bars, shopping, sports arenas and theaters)
- Transportation connectivity: public (buses, subways), private (cars, bicycles, walkability) and commercial (airports, taxis, Uber, DRVR, Lyft) and
- The most current STR Report.
Once a site is identified, will the site appeal to your target guest in terms of price and location? You don’t want to get too far out in front of development in a neighborhood, but you want to get far enough out to lock up the parcel at a price which will make your project financially viable.
So, next time a parcel catches your eye or peaks your interest, ask yourself “Is it a hotel site?”