HVS Lodge Market Report – Sports activities and Conventions Help Lodge Trade in Cincinnati, OH

The Cincinnati lodging market is gearing up for an inflow in demand fueled by the renovation of the Duke Vitality Conference Middle. Furthermore, latest success and adjustments within the metropolis’s numerous sports activities scene are drawing guests from close to and much.

Cincinnati is a big hub of tradition, commerce, and tourism in the Midwest. This dynamic metropolis boasts a wealthy tapestry of demand turbines that gas its lodge business. From its famend arts and music scene, highlighted by the Cincinnati Symphony Orchestra and a multitude of festivals, to its bustling enterprise districts and expansive conference facilities, town attracts a various array of holiday makers year-round. Moreover, Cincinnati’s historic landmarks, main sporting occasions, and burgeoning culinary panorama assist draw a gradual inflow of leisure and enterprise vacationers alike.

Conference Middle Enlargement

The second largest conference middle within the state of Ohio, the Duke Vitality Conference Middle (DECC) is positioned in Downtown Cincinnati. The facility is anticipated to bear a $200-million renovation and enlargement beginning July 1, 2024, with anticipated completion in January 2026. The DECC will absolutely droop operations in the course of the renovation. At present, the DECC options 750,000 sq. toes of perform house, together with a 40,000-square-foot ballroom. The middle additionally provides 37 assembly rooms and roughly 200,000 sq. toes of contiguous exhibition house. The renovation mission is anticipated to modernize the present conference services, add extra breakout rooms, and develop the vacant Millennium Lodge web site into an entry garden.

Along side the conference middle renovation mission, Cincinnati Middle Metropolis Improvement Company (3CDC) issued a request for proposals to pick out a personal developer to construct a brand new conference headquarters lodge. In March 2023, Portman Holdings was chosen because the growth companion for the conference middle lodge. A particular room depend, model affiliation, and timeline for growth have but to be finalized for the brand new conference headquarters lodge; nevertheless, 3CDC expects growth of the lodge to happen concurrently with the DECC renovation mission.

This mission is anticipated to considerably increase the Cincinnati lodging market by attracting bigger conferences and occasions. With enhanced services and a extra trendy conference house, the renovated DECC is anticipated to be extra aggressive with the opposite conference facilities in the Midwest. Moreover, the event of the conference headquarters lodge ought to create enough lodging provide to fulfill the upper ranges of conference demand anticipated.

Sporting Occasions

Cincinnati is dwelling to 3 skilled sports activities groups and over 30 NCAA Division I collegiate groups between the College of Cincinnati and Xavier College.

The Cincinnati Bengals, town’s NFL franchise, has attracted report attendance at Paycor Stadium since 2021 and performed in Tremendous Bowl LVI in 2022. In the meantime, the Cincinnati Reds, one in every of Main League Baseball’s oldest and most storied groups, attracts energetic crowds to Nice American Ball Park and The Banks. FC Cincinnati, town’s Main League Soccer crew, has rapidly garnered a fervent following, drawing followers to TQL Stadium since its opening within the spring of 2021. Following early struggles after becoming a member of Main League Soccer in 2019, FC Cincinnati completed first within the Jap Convention in 2023. Collectively, these groups create a vibrant sports activities tradition that unites Cincinnatians and attracts guests from close to and much. Their latest successes have aided within the restoration of the native lodging market following the impacts of the COVID-19 pandemic.

One other important sporting occasion within the area is the Cincinnati Open, one of many oldest and most prestigious tennis tournaments within the United States. Because the third-largest skilled tennis match within the United States, it is likely one of the ATP Masters 1000 tournaments and one in every of the WTA 1000 tournaments. In 2022, the USTA offered the match rights to Beemok Capital, and new possession explored the potential of transferring the match to Charlotte, North Carolina; nevertheless, in October 2023, Beemok introduced that the match would stay in Cincinnati. This choice ensures that town stays a pivotal hub for tennis fans. Following report attendance in 2023, the Cincinnati Open is slated to broaden in 2025, practically doubling the participant draw and including three days. In consequence, native lodge operators ought to anticipate a rise in demand and common size of keep in the course of the occasion.

On the collegiate entrance, the College of Cincinnati formally joined the Massive 12 Convention on July 1, 2023, marking a big milestone within the college’s athletic historical past. Because the college hosts extra high-profile video games and occasions towards well-known convention opponents, the inflow of visiting groups, followers, and media is anticipated to drive demand for lodges within the larger space.

Current Lodge Tendencies and Wanting Ahead

Cincinnati’s place as a dynamic and thriving Midwest metropolis is mirrored in its lodge metrics. Town’s lodge market, consisting of over 30,000 rooms, surpassed 2019 RevPAR ranges in 2022. And though occupancy development slowed in 2023, ADR continued to climb, resulting in a important enchancment in RevPAR that 12 months.

With a modernized and expanded conference middle and the continual draw of main sports activities occasions, Cincinnati is poised for sustained development in the approaching years. Some adjustments within the lodging market are imminent, as a number of lodge developments are within the pipeline. Whereas market occupancy ranges usually are not anticipated to succeed in 2019 ranges within the close to time period, we anticipate modest will increase in occupancy and regular ADR development to bolster RevPAR ranges.

For extra details about the Cincinnati market or for assist making knowledgeable funding selections that align along with your targets and danger tolerance, please contact Brian Arevalo or Sam Wespiser. 

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About Brian Arevalo

Brian Arevalo, Senior Vice President with HVS, is the chief of the HVS Chicago workplace. Brian earned his masters diploma from The College of Texas at Austin’s McCombs College of Enterprise. Brian’s prior work in hospitality contains roles in lodge operations and company finance. Along with work in Chicago, he contributes to and helps handle engagements all through the Midwest, together with markets equivalent to Indianapolis, Columbus/Dayton, Cincinnati, and Louisville, amongst many others. Contact Brian at (817) 680-7666 or barevalo@hvs.com.