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Private Residences a Significant Factor in the Lodging Industry�s Growth for �06, �07 and �08 |
| PORTSMOUTH, NH � December 13, 2005 - Lodging Econometrics released
its first Development Forecast for three important specialty sectors of
the lodging industry � Timeshare development, Condo Hotels, and for Hotels
developing Private Residences. Patrick Ford, President of LE, indicated
that these Pipeline Forecasts for �06, �07 and �08 and beyond predict rapid
growth and will be of great interest not only to executives in the lodging
industry, but also to developers, investors, lenders, and vendors who operate
in the vacation resort industry or who specialize in upscale residential
real estate markets.
Ford continued, �We are delighted to be compiling development activity
and forecasting new supply additions for these fast-growing sectors where
unit owner demand is being driven by easily-accessed lending at historically
attractive rates, by thriving residential development in many urban centers
and booming second-home development at high-profile resort destinations.�
In 2006, 39 Timeshare projects are forecasted to open, having 3,998
dedicated Timeshare units while �07 will have 27 projects/3,699 units.
Casino destination areas are the most popular locations for development with 4,244 units in the Pipeline, or 28% of the total. Oceanside vacation areas and theme park destinations follow, each having 17% of all Pipeline units, then mountain and ski areas with 16%. Las Vegas is the most popular market with 26% of all pipeline units, followed by Orlando with 17%. Marriott�s Vacation Club has 12 company-owned projects with 2,413 units
in the Pipeline, while Hilton has four projects with 1,108 units.
Cendant�s two brands � Worldmark and Fairfield have a combined 14 projects/1,327
units. Ford commented, �Although the branded vacation clubs are developing
most of the large projects, Timeshare is still pretty much a fragmented
industry with 74 out of 111 projects in the Pipeline being constructed
by smaller local and regional developers.�
In 2006, 32 projects with 4,831 Condo Hotel units are forecasted to open while 27 projects/5,025 units will open in �07. The current Construction Pipeline contains a total of 105 projects with
29,042 condo units, averaging a very high 276 units per project.
The primary purpose of each Condo Hotel project is to function as a hotel servicing regular transient guests. So, most often, unit owners are required to place their units into a hotel rental program when unoccupied, receiving a share of rental proceeds in return. Subsequently, Condo Hotels are usually Upscale, Full-service developments focused in the strongest hotel markets: either popular vacation destinations, or in large cities where suburbanites frequent hotels for business or leisure purposes. 45% of all Pipeline projects are in Oceanside locations, while 10% are near theme parks, and another 9% are at Casino destinations. Florida has the greatest development activity, with 46% of all Pipeline projects. Miami, Fort Lauderdale, West Palm Beach and Orlando are the popular locations. Ford indicated that Condo Hotels are a significant factor in the lodging
industry�s growth because without these products that draw such individual
investor participation, large upscale hotel projects could not otherwise
be conventionally financed and built so early in the industry�s economic
recovery.
Another proven way to build Luxury and Upscale hotels in the early stage of a recovery is to include private residences for sale in the project. In the regular Hotel Construction Pipeline, 142 projects are including some form of private residential development � condominium residences inside the hotel and/or condominiums, town houses and single-family homes adjacent to the hotel. Most all developers will choose a major upscale brand early on as it adds important cachet to the project and communicates a level of amenities and hotel services that often permits developers premium pricing greater than what comparable residential projects in the same community can command, sometimes up to 25% or more. 62% of this type of development is in urban centers or close in suburban
locations of large cities where regular residential condominium construction
has strong momentum. Another 20% of the development is at the country�s
most upscale oceanside resort destinations.
Lodging Econometrics (LE) of Portsmouth, NH is the real estate authority for the lodging industry. LE maintains over 80,000 individual database records throughout the U.S. and Canada for: New Construction, Hotels with Private Residences, Reflaggings, Timeshare Development , Significant Renovation Programs, The Census of Open and Operating Hotels, Casino Development, Real Estate Transactions, Condo Hotel Development |
| Contact:
Amy Hauck
|