IRR-Saint Louis Mid-Year Viewpoint 2015 Local Market Report - Lodging
St. Louis has continued to experience strong growth and momentum for the first half of 2015 fueled by improved national economic conditions, new tourism opportunities for visitors and product enhancements throughout the region. Key performance indicators for St. Louis City and County including hotel occupancy, rate and RevPar set new highs of 66.2%, $100.59 and $66.55 respectively according to Smith Travel Research.
As a result of the continued expansion of area business, and a flourishing tech start-up industry, demand has outpaced supply. These factors bode well for area hotel values in the coming years. Notable developments that have helped increase demand include the Phase I, $100 million, 120,000 square foot dining and entertainment complex known as Ballpark Village.
The CityArch River initiative is transforming the grounds surrounding the Gateway Arch by connecting and expanding the park’s grounds and museums. The Cortex Innovation Community is a technology district that has completed or has under construction one million square feet and has generated 2,500 technology-related jobs. However, hotel supply has remained stagnant in the recent years. Notable hotel developments include a proposed 131 room Holiday Inn at 1030 Woodcrest Terrace Drive, Creve Coeur, Missouri. The property currently consists of a vacant two-story office building containing approximately 35,144 square feet to be partially demolished and converted into the proposed development. Construction is set to begin in 2015 with an estimated completion date of October 2016. A StayBridge Suites extended stay hotel is planned for development of 122 rooms north of the in Westport Plaza. Estimated completion is slated for December 2015. Finally, there is also a new Courtyard Marriott under construction in St. Peters and a new Holiday Inn Express planned in the Chesterfield Valley. The Crowne Plaza Downtown closed in May 2015 and will be turned into 300 apartment units and a 140-room boutique hotel. As demand remains positive and supply growth remains stable, the market should maintain strong occupancy levels and revenue growth.
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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.