United States -  Columbus

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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 (ADR) in Downtown Columbus are reaching record levels given the strong government, financial, and convention demand. Despite significant supply increases throughout the greater market, occupancy has remained strong, and ADR has grown year-over-year since 2011. Occupancy declined in 2018, as supply increases outpaced demand growth, resulting in flat RevPAR. The Greater Columbus Convention Center underwent a major renovation and expansion in 2017, which has helped attract more citywide meeting demand. In 2018, city and county officials announced plans to expand the Hilton Downtown Columbus, adding 470 rooms, by building a second tower above the GCCC. The expansion is expected to begin by late 2019 and open by mid-year 2021.

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 a Moxy Hotel and a Graduate Hotel in the Short North. Since January 2017, over 2,100 rooms have been added to the greater market, highlighted by the 224-room Renaissance by Marriott Westerville and the Marriott OSU/Residence Inn by Marriott dual-branded hotel. Currently, there are nearly 2,800 new hotel rooms in the development pipeline through Greater Columbus, including the 470-room expansion of the Hilton Downtown Columbus. While some of these projects remain speculative, several have strong developer backing and financing in place; as such, we anticipate modest occupancy declines in the near term given the entrance of new supply. However, the breadth of employers and companies in the Columbus metropolitan area should continue to bolster the area's long-term performance.

Five hotels totaling approximately $34 million in transaction volume have sold since January 2018, highlighted by the August 2018 sale of the Holiday Inn Express Columbus Dublin (highest price paid at $10,650,000, or $91,000 per key). Transaction activity declined in 2018 when compared with that of 2017, which had ten transactions totaling nearly $160,000,000 in transaction volume.

* 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.

The widespread impact of the coronavirus (COVID-19) has had an unprecedented impact on hotels and hotel values worldwide. Consequently, the latest HVI analysis may no longer reflect the most current measure of lodging industry strength or the hospitality investment market.

In each of our offices across the globe, we are working tirelessly to analyze the impact of recent events and provide timely insights to help you navigate these uncharted waters. Because it is unclear how long the pandemic will last or how long related restrictions will be in place, we are updating our analyses on a weekly basis using the most current data.

Additionally, examination of value trends in prior cycles can provide useful information. Historical patterns, together with an understanding of the market’s current expectations for the eventual recovery of the industry and its performance, can provide insights on the likely trajectory of decline and recovery for hotel values.

For the Latest Information and Analysis on the Impact of COVID-19Click Here

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For more information, please contact:

Brian Arevalo
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Stacey Nadolny, MAI
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