IRR-Portland Mid-Year Viewpoint 2015 Local Market Report - Lodging
Portland’s central city has seen a recent resurgence of construction and planning of high-end projects. Projects currently under construction are felt to be meeting the growing demand in the market. We have a new convention center hotel under construction as well as remodels of existing hotels in the downtown area, and new construction in the suburbs. The Portland Airport has had strong increases in air travel, which impacts the hospitality demand.
There are two new national flag hotels proposed for the CBD, in addition to two conversion projects from office into boutique hotels. Much of this proposed construction includes EB5 financing, which remains a significant feature of Portland lodging construction. Conversely, there has been limited activity in the midscale and economy classes throughout the suburbs. The only exception has been very limited new midscale construction in the Sunset Corridor submarket, driven largely by Intel and Nike.
Rev-par has edged up throughout the Portland MSA, driven primarily by increasing room rates while occupancy remains relatively stable.
Elsewhere in Oregon, occupancy in the Eugene/Springfield and Medford MSAs is driven primarily by medical users, with hospital-proximate facilities experiencing the most strength. Generally, though, Oregon’s smaller communities have not yet recovered from the recession.
Overall, the hotel market continues to strengthen slowly. The greatest acceleration has been in the urban Portland area, driven by more upscale projects. The suburban market remains steady, with very little new supply which has allowed an upward push on room rates despite stable occupancy levels.
Download the full version PDF of this Local Market Report below to see the charts, graphs, and tables not included above.
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.