Pittsburgh’s hotel market recently experienced economic boom, fueled in part by the energy industry. For years, the steel industry led the charge, but in recent years the shift has been towards the exploration of Marcellus Shale and natural gas deposits. Downtown received nearly $6 billion in investment, furthering hotel development especially within the limited-service area. The story takes on a different shape more recently, with increased supply and very little demand. According to STR Global, hotel occupancy is down 9.6 percent YOY, to 60.3 percent.
The Pittsburgh Opportunity
About 4 million people visit Pittsburgh annually, representing a spend of $5.9 billion annually across Allegheny County. Harper’s Bazaar recently named the city No. 4 “best places to travel in 2017.” The city is driven by education, as it is home to major colleges and universities such as Carnegie Mellon, Duquesne, and Pitt. Other demand generators include finance, technology, healthcare and a handful of Fortune 500 companies, such as WESCO International and Allegheny Technologies. With 252 hotels and 28,000 rooms, supply is up 6.9 percent and demand is down 3.3 percent.
Current projects and numbers:
- There are 52 hotels with 5,250 rooms in the pipeline
- 11 hotels with over 1,100 rooms are currently underway
- $5.5 billion has been invested in the downtown area for redevelopment since 2006
- A 155-room Even Hotel is expected to open in 2017
- Concord Hospitality has plans to open Pittsburgh’s first AC Hotel by Marriott in the Strip District in Downtown Pittsburgh
Past numbers and transactions that speak to the current opportunity include:
- Eleven hotels in Pittsburgh sold for more than $150,000 per key
- On a per-room basis, the largest sale was the Residence Inn by Marriott Pittsburgh North Shore for about $44 million
- Valuation is expected to grow by 2 percent this year and by 12 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.
7:45am -8:45am REGISTRATION & NETWORKING BREAKFAST
8:45am-9:00am WELCOME | Hotel Management & AAHOA
9:00am - 9:30am MARKET SNAPSHOT
In this opening kickoff, our local market expert delivers the facts and figures you need to know to make intelligent business choices. Your asset and bottom line will thank you.
9:30am – 10:00am LOCAL INTEL
Join a regional expert, who will convey what’s really going on at the street-level so that your next business decision is backed up by the right intelligence from a local source.
10:00am – 10:45am MAXIMIZING REVENUES
In this two-part, income-driven session, panelists serve up hot takes on how to increase revenues by pulling levers associated with the rooms and F&B departments, get a "how-to” on savvy revenue-management tactics and OTA optimization to upselling opportunities and more.
10:45am – 11:00am NETWORKING COFFEE BREAK
11:00am – 11:45am MINIMIZING COSTS
Whether above or below the GOP line, variable and fixed costs can eat into your asset’s profitability. This panel will tell you how to manage these costs—from sales and marketing, commissions and salary and wages, to franchise fees, insurance, taxes and FF&E reserves.
11:45am – 12:30pm BRAND MATTERS
In this panel, brands make their case as to why they can deliver the most to your bottom line, while management companies and franchisees give their success stories.
12:30pm – 1:45pm NETWORKING LUNCH
1:45pm – 2:45pm SECOND TAKE
This panel takes aim at hotels in secondary and tertiary markets and explains how to get the most out of your asset when it’s not located in a top MSA.
2:45pm – 3:30pm EXIT STRATEGY
Experts weigh in on how to get your hotel in tip-top shape, through covering debt service to funding a PIP. Here are the dos and don’ts you need to know toward windfall profits.
3:30pm - 3:45pm TAKEAWAYS | Hotel Management & AAHOA
Before you head back to the office, we will walk you through "how to" implement your new plan.