IRR-Louisville Mid-Year Viewpoint 2015 Local Market Report - Lodging
The hospitality market has broken the grip of the recession and is now experiencing an uptick in activity. In the full-service sector, a 162-room Hilton Garden Inn opened in October at 4th & Chestnut Streets. One block north, a 304-room Embassy Suites opened in April in the historic Stewart’s/ Hilliard Lyons building. At the site of a planned 600-room Omni hotel and mixed-use development, the city has demolished several existing structures and committed $1MM to relocating an historic building still on the site.
Omni anticipates the development, which will also include 225 luxury apartments, will be completed by July 2018. Downtown will also gain two boutique hotels: at 1st and Main, an Aloft hotel with 172 rooms is on schedule to open in November, and in NuLu, a 150-room hotel is planned and expected to be operated by Marriott. A second Aloft hotel, with 124 rooms, has been proposed for the suburbs at Westport Road and I-265.
In the limited-service sector, construction has begun on a 145-room Holiday Inn in the Glassworks district on West Market Street. In the East End, a 124-room Value Place hotel is now open. A dual-brand Hilton hotel is currently under construction on North Hurstbourne Parkway, with an expected completion date of April 2016. Within the 97,000 square foot hotel, a Hampton Inn will offer 83 rooms, and a Home2 Suites will have 77 rooms. The State Fair Board recently announced the Kentucky International Convention Center downtown will close for two years beginning in August 2016, dealing a significant blow to both downtown and suburban hotels. According to an economic impact study, the KICC accounts for approximately 75,000 hotel rooms booked each year. Moreover, traffic will remain a concern until the downtown and east end bridges are completed next year.
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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.