Resort Market Report Kansas Metropolis – Stability, Revitalization, and Progress: a Have a look at Kansas Metropolis’s Three Outstanding Submarkets

Downtown Kansas Metropolis and the Nation Membership Plaza are established submarkets in Kansas Metropolis, every with sturdy demand turbines and quite a few accommodations, whereas Village West is a rising submarket with a robust pipeline of growth. Whereas these markets are all in numerous financial phases, the outlook is optimistic for all three.

The higher Kansas Metropolis MSA resort market advantages from financial energy, supported by sturdy current and anticipated demand turbines. Throughout the metropolitan space, the Downtown Kansas Metropolis, Nation Membership Plaza, and Village West neighborhoods are three of the town’s most distinguished resort submarkets with notable developments. Whereas there’s optimism for the outlook for all three resort submarkets, each is at a special stage of the financial cycle, and the accommodations inside these submarkets give attention to totally different demand sources.

Downtown

Downtown Kansas Metropolis accommodations profit from sturdy business demand turbines, such because the H&R Block headquarters, the Canadian Pacific Kansas Metropolis Railroad headquarters, SS&C Applied sciences, and the federal authorities. Leisure demand turbines embody the Energy & Gentle District, T-Cell Middle, Nationwide WWI Museum and Memorial, and Crown Middle procuring advanced.

One other important demand generator for downtown accommodations is the Kansas Metropolis Conference Middle. In 2020, the 800-room Loews resort opened because the flagship resort for the conference middle, permitting the town to host bigger occasions. The variety of occasions held on the conference middle has elevated yearly since 2020, surpassing pre-pandemic ranges in 2022 and additional rising in 2023.

Given the leisure demand sources and the elevated conference exercise, the downtown resort market has skilled a robust restoration from the COVID-19 pandemic, with RevPAR far exceeding pre-pandemic ranges since 2022. Thus, the downtown submarket has totally recovered from the pandemic and is comparatively steady with an expectation of modest RevPAR progress within the coming years.

Resort Growth and Outlook

Optimism from builders has led to latest resort growth on this submarket. Two new downtown accommodations opened in October 2024: the 239-room AC Resort Kansas Metropolis Downtown and the 118-room Origin Resort at Berkley Riverfront Park. A number of different accommodations have been proposed for Downtown Kansas Metropolis, such because the Hyatt Home, Cambria Resort, and Cover by Hilton, however varied delays in growth have prevented these tasks from making notable progress.

Given the event curiosity and up to date new provide on this market, it’s evident that traders are optimistic. Nonetheless, the quantity of anticipated new provide doesn’t significantly outpace the anticipated progress of demand on this neighborhood, indicating a optimistic long-term outlook for RevPAR on this submarket.

Nation Membership Plaza

The Nation Membership Plaza is an out of doors, regional procuring middle that features a number of high-end retail shops and among the metropolis’s most well-regarded eating places, together with JJ’s Restaurant, Gram & Dun, and Rye; subsequently, accommodations inside this submarket seize a excessive quantity of leisure demand all year long. Whereas a majority of enterprise vacationers keep in Downtown Kansas Metropolis, accommodations on the Nation Membership Plaza appeal to business vacationers associated to Lockton Corporations, Polsinelli Legislation Agency, and St. Luke’s Hospital.

Previous to the COVID-19 pandemic, accommodations on this neighborhood achieved the very best RevPAR ranges within the Kansas Metropolis space; nonetheless, rising emptiness charges and prison exercise have restricted the restoration of this submarket. In the summertime of 2024, the procuring middle was offered to HP Village Companions. The brand new possession group plans to revitalize the world by considerably rising safety, renovating a number of current buildings, including a brand new workplace constructing, opening a brand new boutique resort, and spending over $150 million on infrastructure upgrades.

Consequently, the Nation Membership Plaza is getting into a interval of revitalization. New possession’s enchancment plans for the Nation Membership Plaza and the world’s sturdy resort choices ought to enable the neighborhood to achieve its full potential as soon as once more.

Resort Growth and Outlook

Given the latest points that this space has confronted, the downtown submarket has outpaced the Nation Membership Plaza in RevPAR for the previous couple of years; nonetheless, the enhancements deliberate by new possession of the Plaza ought to drive demand on this submarket and assist space accommodations surpassing the pre-pandemic RevPAR ranges. As well as, though the Aloft Resort and the Cascade Resort, a Tribute Portfolio affiliate each opened in 2023, no new lodging provide is anticipated within the close to future inside the Nation Membership Plaza space.

Village West

Village West is positioned roughly 15 miles west of Downtown Kansas Metropolis. Growth on this space started with the opening of the Kansas Speedway in 2001, and the world has been rising since. Village West is now one of many high vacationer locations within the state of Kansas, that includes the leisure demand turbines proven beneath, amongst others.

Sources: Go to KC, Argyle Occasions Instagram, Go to Kansas Metropolis Kansas, Go to Overland Park

Developments

Village West is at present in a interval of fast progress with plenty of massive developments deliberate or underway. Most notably, Trip Village is an ongoing $838-million growth on the positioning of the previous Schlitterbahn Water Park. This growth consists of an current indoor sports activities facility and youth baseball advanced, with plans for a number of extra points of interest, equivalent to Huge Pictures Golf, the Atlas9 interactive museum, and a 55,000-square-foot sports activities and live performance area. Moreover, the 230-room Margaritaville Resort is beneath development inside Trip Village and can embody a number of eating places, almost 7,000 sq. ft of convention area, and quite a few family-friendly facilities. Trip Village is anticipated to be accomplished in the summertime of 2025.

One other important growth in Village West is the brand new American Royal advanced, which shall be shifting to this space from its Downtown Kansas Metropolis location in 2025. The brand new agricultural-events campus will embody an exhibition corridor, two arenas, and a learning-engagement middle. The services will host livestock reveals, barbecue competitions, equine reveals, and rodeos.

Moreover, Mattel Journey Park has been proposed for growth in Bonner Springs, adjoining to Village West. The 180-acre theme park will embody family-friendly points of interest equivalent to curler coasters, an immersive theater, and themed eating. Reportedly, development might begin by the top of 2024, with the park anticipated to open by 2026.

The resort market in Village West largely contains limited-service accommodations, except for the Nice Wolf Lodge. As talked about beforehand, the Margaritaville Resort is beneath development and anticipated to open in the summertime of 2025. The one latest change to provide has been the opening of the Fairfield by Marriott in September 2024.

Village West is a younger neighborhood experiencing fast progress. This market is at present deprived by the restricted variety of full-service accommodations and higher-end eating places, which makes it tough for this space to compete for among the demand that’s captured by Downtown and Nation Membership Plaza accommodations. Nevertheless, within the years following completion of the aforementioned main developments, demand on this space is anticipated to considerably improve.

Resort Growth and Outlook

Demand progress is anticipated to accentuate within the coming years given the completion of Trip Village, the American Royal Complicated, and the Mattel Journey Park, and accommodations on this submarket will be capable of seize a extra notable portion of the town’s leisure and group demand. Whereas just one lodging property is at present beneath development on this submarket, we count on that new resort tasks shall be proposed and accomplished in Village West over the following a number of years.

Conclusion

The higher Kansas Metropolis resort market has skilled a robust restoration from the COVID-19 pandemic, and the world advantages from the event of sturdy demand turbines and a rise in citywide occasions. Whereas every submarket and property is exclusive, the latest efficiency and outlook for the higher resort market ought to encourage confidence in traders and builders inside the Kansas Metropolis space.

Our work inside native markets empowers us to conduct main interviews with key market individuals. This method ensures we get hold of real-time insights and present knowledge for every market we function in. For extra details about the Kansas Metropolis market or for assist making knowledgeable funding selections that align together with your objectives and threat tolerance, please contact Benjamin Giebler, your native HVS Midwest hospitality knowledgeable.

Sources:

https://www.kansascity.com/information/native/article292198720.html
https://flatlandkc.org/economic-opportunity/new-owner-shares-vision-for-country-club-plaza/
https://www.cjonline.com/story/information/politics/state/2024/09/05/latest-on-anticipated-theme-park-in-kansas-by-barbie-manufacturer/75074873007/
https://kctoday.6amcity.com/vacation-village-in-kansas-city

About Benjamin Giebler

Benjamin Giebler is a Senior Venture Supervisor with the St. Louis HVS consulting and valuation apply. Benjamin obtained his Missouri Actual Property License in 2018 and Kansas Actual Property License in 2020 and labored as a business actual property agent in Kansas Metropolis. His expertise within the hospitality business consists of working as a valet and bell supervisor on the Marriott Downtown Kansas Metropolis, and he was a part of the opening staff at Resort Kansas Metropolis as a entrance workplace and bell supervisor. He graduated from the College of Missouri-Kansas Metropolis with a Bachelor of Science in Enterprise Administration with an emphasis in Actual Property and Finance. Moreover, he earned a certificates in Hospitality Actual Property Investments and Asset Administration from Cornell College. Contact Benjamin at (816) 589-0922 or bgiebler@hvs.com.