Hotel Feasibility Study
On February 24, 2020, City Council voted to accept the hotel feasibility conducted by consulting firm Hotel Valuation Services (HVS). This study was conducted to address the current and projected market demand for the number, type, and duration of hotel stays in the City, along with a competitiveness analysis on what the hotel must do to be successful among other regional hotels, and to prepare an economic feasibility analysis and pro forma for a potential hotel. Read the full report here.
The study identified four potential hotel sites:
Based on these rankings, location #3 on the southern side of University City, at the intersection of Forest Park Parkway and Forsyth Boulevard, was deemed the most attractive and supportive for potential hotel development. This location benefits from its proximity to ample commercial and leisure demand generators, with excellent transportation access and a supportive neighborhood. These attributes make this location ideal for the development of a select-service lodging facility; however, we note that we have not investigated the availability of specific development sites within the scope of this study.
Potential location #1 was considered adequate for hotel development on the strength of its accessibility and the supportive nature of planned redevelopment in the immediate neighborhood. However, hotel development would be somewhat contingent on the planned redevelopment, as the neighborhood lacks immediate proximity to major demand generators.
Location #2 benefits from excellent access and adequate proximity to demand generators, as well as an adequately supportive neighborhood. These factors make the location a good candidate for potential development with a limited-service, select-service, or extended-stay hotel.
Location #4 benefits from a vibrant neighborhood and excellent proximity to leisure demand generators; however, it lacks ideal access and proximity to commercial demand generators. Given this balance, the location may serve as an ideal location for a modestly sized boutique hotel.
The City will utilize the study to market these sites to potential hotel developers.