While banking, energy and healthcare are clear demand drivers, Charlotte has a big 2017 in store with Hamilton and the PGA Championship coming to town. Charlotte’s tourism is outperforming the rest of the state; in 2015 tourism generated $160 million in spending. However, Charlotte recently took a major financial hit with the passing of House Bill 2, which has turned away a plethora of business and leisure related events. The NBA announced it will move the All-Star Weekend from Charlotte to New Orleans, costing the city $100 million.
The Charlotte Opportunity
Charlotte’s pipeline is very strong, with 306 hotels currently open and 66 to be built, generating 8,970 more rooms. Supply is up 1.1% and demand is up 3.1%. A mixed-use development is planned for northeast Mecklenburg County from Charlotte-based MPV Properties, which will feature residences, retail stores and a hotel with 120 rooms. The city center is seeing the most traction with $2 billion worth of development projects in 2016 and another $2.7 billion in 2017.
Current projects taking place:
- The $50 million 250-room Embassy Suites by Hilton will open in 2017
- A West Elm hotel is on the books
- A 195-room Springhill Suites is set to open April 2017
- A 300-room dual-branded Residence Inn and AC Hotel by Marriot will open in 2018 on top of the EpiCentre
- A 250-room Embassy Suites by BPR Properties will open across from the Nascar Hall of Fame in 2017
Past valuations and transactions that speak to the current opportunity include:
- Thirteen hotel deals have been recorded since June 2014, and five of these were over $20 million in price
- Hotel valuation is expected to increase 2 percent this year, and grow 13 percent over the next four years
Because, you will be armed with ideas, solutions and actionable insights that will make an immediate impact on your property. Whether you focus on infrastructure investment opportunities or strategies that force you to “think and act locally” in targeting specific growth sectors, you can take steps that positively influence your ROI.
"Charlotte took a financial hit last year thanks to House Bill 2, but all signs still point to growing supply and demand through 2017. Development within the city continues at an impressive pace and hotel valuation is expected to climb 13 percent through 2021, so we're excited to see what the Hotel ROI Conference has in store for the region's hoteliers." - Hitesh (HP) Patel, AAHOA Treasurer