News for the Hospitality Executive |
Performance Soars at
Hotels Connected to Airport
Terminals
By: Joseph Pierce April 4, 2013 Do travelers want to stay at an airport hotel connected to an airport terminal? Our research suggests that not only do guests prefer that, but they are even willing to pay a premium to do so. Hotels connected to airport terminals achieve higher levels of occupancy and average daily rate (ADR) than their general airport counterparts. Within the continental United States, there are hundreds of airport facilities ranging in size from Hartsfield-Jackson Atlanta International Airport in Atlanta, Georgia, which had over 44 million enplanements in 2011 to facilities with just over 10,000 enplanements annually. Recognized as economic engines for their respective communities, airports foster commercial development within their markets and frequently support the development of hotel sub-markets within a metropolitan area. While most big city airport markets have hotels surrounding the airport, a smaller number of communities have hotels located on the airport grounds, and even fewer have hotels attached to the airport’s passenger terminal. We have profiled hotels that adjoin airport terminals at the following airports:
In examining these properties, we looked at the
amenities offered and relative size of each property. The following
table profiles the comparable hotels.
The previous table shows an array of hotel developments serving the identified airports. The number of guest rooms at these hotels range from 860 rooms at the Hilton Chicago O'Hare Airport, complementing the sample’s busiest airport, Chicago O'Hare International, to 146 guest rooms at the Four Points by Sheraton Huntsville Airport at the least active airport, Huntsville International / Carl T Jones Field. Miami International Airport Hotel does not have a swimming pool or fitness center. The Four Points by Sheraton Huntsville Airport also has no pool but has a fitness center and is adjacent to the Sunset Landing Golf Course. Each of the remaining properties offers a fitness center and swimming pool. Three of the facilities shown also provide some form of spa service. All of the properties are full-service hotels providing at least one restaurant, a lounge, extensive meeting space, and in about half the cases a coffee shop. The Hyatt Regency Orlando Airport adjoins a modest shopping mall offering a variety of stores and a duty-free shop. We have examined the performance of 10 of the
13 properties connected to previously identified airports as well as
overall airport hotel performance and full-service hotel performance as
reported by Smith Travel Research for 2010 and 2011. The following
table shows the estimated performance of these hotels.
The previous table indicates that airport hotels located adjacent to airport terminals outperform airport hotels overall as well as full-service airport hotels overall as reported by Smith Travel Research in all performance indicators.
Staying at a connected airport hotel has many benefits for travelers. It can afford the guest the opportunity to avoid extra time waiting for an airport shuttle or extra expenses such as a taxi to a nearby hotel or, in some cases, a rental car. Guests have the ability to walk to and from the hotel to the terminal. Guests will pay a premium for the opportunity to stay at a full-service, connected airport hotel, as our research indicates that hotels connected to airports achieve higher occupancy and ADR levels than other nearby airport properties. These hotels have a clear advantage and a wide appeal to the traveling public. About the Author |
Contact: Hotel & Leisure Advisors, LLC 14805 Detroit Avenue Suite 420 Cleveland, Ohio 44107-3921 Phone: 216-228-7000 Fax: 216-228-7320 Website: www.hladvisors.com |
Also See: | Waterpark
Resorts Supply and Demand 2013 Update / David J. Sangree / January
2013 |
Weight
Loss Resorts Are A Boon for Developers / David J. Sangree &
Laurel A. Keller / September 2012 |
|
How
to Perform a Feasibility Study for Indoor and Outdoor Waterpark Resorts
/ David J. Sangree, MAI, CPA, ISHC / July 2012 |
|
Season
Pass Price Positioning for Outdoor Waterparks / David J. Sangree,
MAI, CPA, ISHC / February 2012 |
|
Ten
Largest Hotel Brands' Average Sale Prices / David J. Sangree, MAI,
CPA, ISHC / October 2011 |
|
The
Lodging Market is Improving in Ohio’s Big Cities; A Close Look at
Cleveland, Columbus, and Cincinnati / David J. Sangree, MAI, CPA,
ISHC and Joseph Pierce / September 2010 |
|
Cleveland's Second Wind: 2008 Hotel Industry Overview / Hotel & Leisure Advisors / September 2008 | |
Ohio’s Lodging Market: Historical Analysis & 2006 Forecast / David J. Sangree, Laurel A. Keller, and Joseph Pierce / March 2006 |