daniel mccoy
A Closer Look at Hotel Interest Rates: Past and Future
Dan P. McCoy | May 30, 2024
By Daniel P. McCoy Over the past couple of months, it has become increasingly clear that interest rates for hotel financing, and just about everything else, may stay higher for longer. As markets adjust to this expectation, many investors are realizing that they may not be able to delay deals until rates drop back down to so-called “normal” levels. There is mounting pressure for financing decisions that will need to be made in the coming months. In this article, we have compiled and analyzed historical hotel interest rate data, as well as indications from the Federal Open Markets Committee (FOMC or “Fed”) on the anticipated direc...
Kansas City’s Flourishing Demand Generators Bolster Hotel Interest
Benjamin Giebler | May 9, 2023
By Benjamin Giebler, Daniel P. McCoy The Kansas City hotel market has rebounded following the impacts of the COVID-19 pandemic, and high levels of leisure demand and the return of convention activity have driven the recovery. Despite rising construction costs, a number of hotel developments are proposed in Kansas City, signaling an optimistic outlook for the market. Events and Developments in Kansas City A number of major events and development projects across Kansas City should boost hotel demand and bolster pricing power in the coming years, as outlined below. In March 2019, construction began on a $1.5-billion project to convert ...
The St. Louis Lodging Market’s Enduring Recovery
Daniel P. McCoy | March 14, 2023
By Daniel McCoy, Benjamin Giebler Similar to the rest of the nation, hotel metrics in St. Louis plummeted in 2020 at the onset of the COVID-19 pandemic, but the market had entered a healthy recovery phase by the spring of 2021. Growth accelerated through the remainder of the year, fueled by a surge of leisure travel and the slow reemergence of commercial demand, as well as the return of conventions and major events. Demand continued to improve in 2022, as corporate employees gradually returned to offices and attendance at large conventions and events increased. Rising labor costs and the shift in travel patterns, as leisure demand rapid...
Recovery Outlook for the St. Louis Lodging Market
Daniel McCoy | February 15, 2022
By Daniel McCoy Amid a worldwide pandemic, RevPAR for Greater St. Louis[1] fell 54% in 2020 from the historical peak achieved the prior year. This compares to a 47.5% drop for the United States, as a whole, and a 57.6% drop for the top 25 markets in the nation, according to STR. In 2021, the greater St. Louis market’s RevPAR bounced back to just over 75% of the pre-COVID performance. This rebound is less than the 83% recovery experienced nationally, but stronger than the 67% recovery of the top 25 markets. While the greater St. Louis market has generally fared better than many of the larger urban markets that were more rel...
The Suite Spot for Family Travel: Development Insights for Attracting Summer Travel Demand
Daniel McCoy | July 19, 2019
By Daniel McCoy As a hotel development consultant, my work experience offers my family some helpful insight, and plenty of annoying hotel-geek commentary, in planning our stays. My experience as a family traveler also informs my consulting perspective and helps provide a real-world basis for the advice I provide to clients. The number one insight from my experience on the road with the fam is the value of suites. While typically considered in the context of extended-stay hotel demand, studio and one-bedroom suites offer traveling families much desired space. After hours upon hours crammed in a car together, most families need the extra ...
HVS Market Pulse: Destination Downtown St. Louis
Daniel P. McCoy | April 30, 2019
By Daniel P. McCoy The St. Louis Cardinals remain the market's number one tourism attraction, and a $260-million expansion of the stadium-adjacent entertainment complex, Ballpark Village, is underway. The city's other top attraction, the Gateway Arch, just completed a $380-million revamp in 2018. By late 2019, the $187-million transformation of the former Union-Station shopping mall into the St. Louis Aquarium is expected to be complete, adding a new major attraction to the market. These exciting developments are complemented by a host of other attractions in the City of St. Louis, including a casino, two arenas, and numerous museums an...
