United States -  Columbus

Overview:

Columbus, located at the confluence of the Scioto and Olentangy Rivers, has served as the state capital since 1816. The city, which is nearly equidistant between Cleveland and Cincinnati, is the largest city in the state. Columbus is a college town, home to The Ohio State University (OSU), and is a major center for financial and healthcare services for the entire Central Ohio region. As the state capital of Ohio, the city enjoys a stable economy, primarily due to the presence of local, state, and federal government entities.
 
Occupancy and average rate in Downtown Columbus are reaching record levels given the strong government, financial, and convention demand. Although the amount of hotel supply has remained stable in Downtown Columbus over the past few years, there are several hotels in the pipeline for the Central Business District (CBD), such as the Hotel Leveque Autograph Collection, Canopy by Hilton, AC by Marriott, and the Home2 Suites by Hilton. The Columbus Convention Center renovation and expansion, which is scheduled for completion mid-year 2017, should help support an increase in demand going forward. Additionally, over ten residential developments in Downtown Columbus are anticipated to create more economic activity in the Downtown area.
 
Recent and ongoing Class A office space additions and renovations in the Columbus neighborhoods of Grandview Heights, the University District, the Short North, and Upper Arlington are spurring the development of new hotels outside of the CBD, such as Le Méridien Columbus, The Joseph, which opened in the Short North Arts District in January 2015. Additionally, the strong demand levels near OSU have spurred significant hotel growth along Olentangy River Road, where five new hotels are under development. The new supply will certainly affect occupancy levels throughout Columbus; however, the breadth of employers and companies in the Columbus metropolitan area should continue to bolster the area's economy.
 
Ten hotels totaling approximately $98 million in transaction volume have sold since January 2015, including such assets as the Courtyard by Marriott Columbus Downtown (highest total price paid at $25,375,524 or $170,306 per key) and the Hampton Inn Columbus Easton (sold for $21,236,700).
 
* The HVI is an index, a statistical concept reflecting a measure of the difference in the magnitude of a group of related variables compared with a base period. As such, it is a measure of broad market trends, rather than a conclusion as to the specific value of any asset, and cannot be applied to an individual asset. A good comparison is the Consumer Price Index. While this index provides a reliable measure of the overall rate of inflation in a region, it does not indicate how the price of milk has changed at your grocery store. So how can the HVI be of use to an individual investor? Although the HVI cannot tell you what a particular hotel is worth, it does provide excellent big picture data, indicating which market areas are experiencing positive trends, and thus may present good investment opportunities. The HVI for the U.S. is a measure of the strength of the lodging industry as a whole and, specifically, the hospitality investment market. The HVI for the various identified markets can provide a basis to evaluate and compare different geographic regions. For more insight on the limitations and applicability of the HVI, please read the message on the HVI home page by clicking on the graphic at the top of this page.

Valuation Trends and Predictions:

Columbus United States
Previous Year +3% (15 of 71) +1% (49 of 71)
Growth in 2017 -2% (64 of 71) +2% (36 of 71)
Growth in next 4 years -100% (68 of 71) +12% (32 of 71)

Change In Value For Market:

Columbus RevPar % Change

For more information, please contact:

Stacey Nadolny, MAI
snadolny@hvs.com
  • +1 419 367-3879 (w)
Meghan Bean
mbean@hvs.com
  • +1 734 649-7221 (w)
Brian Arevalo
barevalo@hvs.com
  • +1 817 680-7666 (w)