IRR-Cincinnati Mid-Year Viewpoint 2015 Local Market Report - Lodging
The lodging market in Cincinnati is on the rise. Demand growth picked up for the city in 2014 and occupancy is back to a level in line with the state overall; however, Cincinnati continues to lag both the Cleveland and Columbus markets. Growth in both supply and demand are close to state levels in 2014.
Development has accelerated recently with most supply additions in the upper midscale, upscale and extended stay segments. Two new hotels recently opened downtown including Hampton Inn and Homewood Suites hotels in the old Enquirer building.
The upscale Renaissance Hotel by Marriott in the old Bartlett Building recently opened as well. Also, a Holiday Inn plus a seven story garage with street-level retail will replace part of the old garage and the former American Red Cross building at 8th & Sycamore. It was recently announced that a new AC Hotel by Marriott will be built in The Banks development area.
Demand downtown is partially driven by the general growth in the downtown area including the Horseshoe Casino, along with the announcement that GE will locate its new global operations center with 2,000+ employees in The Banks development between Paul Brown Stadium and Great American Ballpark. Suburban lodging development is occurring as well with a new Hampton Inn underway in Blue Ash, plus a 130-room AC Hotel by Marriott in the developing Liberty Center.
To remain competitive with the new supply, many existing hotels have undergone capital projects, resulting in an overall increase in the quality of market supply. Rate growth has improved in recent years which has resulted in an improvement in the quality of supply and the overall strength of the market.
Cincinnati has made a concerted effort to grow regional and national awareness with the hope of bringing new visitors to the area via conventions along with company relocations. With the continued strength of the Cincinnati job market, and marketing efforts by public and private entities to bring in visitors, hotel economics should grow favorably over the next few years.
Download the full version PDF of this Local Market Report below. It includes graphs and tables.
IRR Mid-Year Viewpoint 2015 comprises a National Overview report and 300+ two-page Local Market Reports for all key property types as well as additional resources, including metrics methodology, graphs, and tables; these free reports may be downloaded from IRR’s site here.