Canopy Hotel

[Urbanized]

Really interested in where that info comes from. I talk to Bricktown hotel and industry people on a daily basis and they are constantly remarking how strong demand is downtown. The softening right now is at the edges - of the city, not downtown. There definitely is some concern for what the influx is doing to prices for downtown and for the entire industry - new hotels need for rates to stay above a certain level to remain profitable, even when full - but there has been little if any talk about vacancy issues in the core.

Also, the newer hotel properties will get a major shot in the arm with the opening of the convention center, which is surely something developers are banking on.

The reality is that we don't have an overbuilt problem in OKC so much as we have an under-demolished problem (to borrow a phrase from the late John Q Hammons). Many of the older, jankier (and unfortunately larger) properties around town are completely paid for and can profitably keep their doors open with minimal staff and leasing rooms at a depressed rate that puts downward rate pressure on new hotels, forcing them to compete at rates which are marginally profitable or worse. This is yet another consequence of bad land use policy over the decades, which keep land values and property taxes so low that owners have little incentive to redevelop spent properties.

Would be interested to hear Pryor Tiger's take on vacancy in Bricktown. He's involved with the imminent opening of two properties in the district and just moved over to them from another new-ish one that for some time was the top performing Holiday Inn Express in the country.

[Pryor Tiger]

Occupancy is definitely not 35% and under in Bricktown, surprised to hear that sentiment. Overall, the end of 2017 is coming on quite strong year over year for the market considering 2016 Nov and Dec were pretty tough as economy was down, little to no oil and gas, and election cycle. At this point, I would confidently say there are maybe a couple properties lower than 70% annual occupancy in DT OKC and Avg Daily Rate/Revenue Per Room is higher in DT/BT than in any other district in Oklahoma. I think we have absorbed the SpringHill and the 21C at this point just due to increased overall room demand. Looking at the numbers, I think most owners would be happy with where things are now if they continue but the reality is we will likely see a short term decline until the Convention Center opens with another 3 hotels opening 2018 and 4-5 more in 2019-2020. Then I think it becomes more important to run a great property and have a successful sales gameplan until the new influx of demand comes in.

In terms of the Convention Center, we have started to receive some request for proposals (RFP's) for 2020-2022 and I can tell you we are already playing ball in a completely different stratosphere. Events that have double the participants of what we can handle now, with needs for dozens of breakout spaces and over 3000 guest rooms a night. I believe with the right leadership at the CVB, in partnership with Omni Sales Team, our DT hotel supply has to be over 5,000 guest rooms when the CC opens. Right now we are sliding above 2,500 and I do think we will be right near 5,000 in 2020-21.

Urbanized is right on with his post in all areas, however most pertinent truly is the issue of about 20-25 hotels that really drag down market ADR. This hurts in many ways including driving down overall rate, but also our government rate ($95) is heavily predicated off the market ADR and would likely go up $10-15 if this happened. That alone would make a financial impact across the board for every hotel.. For comparison, Enid has strict hotel rules and they have I believe a $116 Government rate in place.

Lastly, I wish the Canopy well. I think we are really fortunate to be getting hotels that are very limited nationwide like the Canopy Hilton, AC Marriott, and 21C. Add to that a couple of Marriott signature autograph collection properties and we are making quite a name for ourselves with excellence in our DT hotel supply.

[catch22]

^ Thanks to the insight. Very exciting post to read.

[David]

Yeah, that kind of industry analysis is fascinating.

[Urbanized]

Thanks Pryor Tiger!

[Zuplar]

According to the Oklahoman this is dead.

[G.Walker]

Thank goodness! Enough with the cheap hotels already. Now lets see a nice mixed-use office/residential development for this area.

[GoThunder]

Thank goodness! Enough with the cheap hotels already. Now lets see a nice mixed-use office/residential development for this area.

Completely agree. This site needs a quality mixed use development with a focus on density.

[LakeEffect]

Thank goodness! Enough with the cheap hotels already. Now lets see a nice mixed-use office/residential development for this area.

For the record, Canopy wouldn't have been a cheap hotel.

[jonny d]

Completely agree. This site needs a quality mixed use development with a focus on density.

Canopy isn't a cheap hotel. But by all means, don't let facts get in the way of your post.

I actually agree with you, in terms of what is needed; but not about the Canopy being cheap.

[Pete]

Canopy would have been a higher-end, full-service hotel.

But the other two were the typical through-the-wall-HVAC places you see all over the city.

[GoThunder]

Canopy isn't a cheap hotel. But by all means, don't let facts get in the way of your post.

I actually agree with you, in terms of what is needed; but not about the Canopy being cheap.

Was moreso agreeing with the second half of G.Walker’s post, but thank you. Canopy would have been nice but I think mixed use is the best option for this site.

[HangryHippo]

I'd like to see the Bricktown Renaissance happen as planned and for the Canopy Hotel to happen on the lot of the (now dead) Cummins Building proposal. Bricktown needs some full-service hotels and both would be good additions. The rest of Bricktown needs some mixed-use development.

[jonny d]

Was moreso agreeing with the second half of G.Walker’s post, but thank you. Canopy would have been nice but I think mixed use is the best option for this site.

Yes. I would love a mixed-use type project. Might not have a ton of height (doesn't need to be tall), but I would love some residences (not apartments) for Bricktown.

[SagerMichael]

Let the people behind Penn Central get their hands on this land. Now that would be exciting

[soonerguru]

I wish the Canopy were the concept being built on 6th in Auto Alley. Much better fit for the area than a Towneplace Suites.