Downtown Cincinnati hotel market strongest in region

Published Oct. 6, 2009 at 12:00 a.m.
Like most urban cores, downtown Cincinnati boasts a large collection ofhotels catering to tourists, business travelers, conventioneers andmore.  Downtown counts three Four Diamond Award winning hotels - HiltonCincinnati Netherland Plaza, The Cincinnatian Hotel, The WestinCincinnati - among its affordable offerings. 

Recently, the downtown hotel market has experienced a surge of interestfor a new boutique hotel, raising the question: does it makes goodeconomic sense to develop a new hotel, or will a surplus of availablerooms simply canibalize other existing accomodations? The numbers makethe case that things are looking up.

According to Downtown Cincinnati Inc.(DCI), in 2008, downtown Cincinnati compared favorably with the rest ofthe metropolitan region with a 55 percent occupancy rate, while thethree state region that comprises Greater Cincinnati/Hamilton Countyand Cincinnati USA logged 54.5 and 54.7 percent occupancy ratesrespectively.  The higher occupancy rate downtown was coupled with aslightly higher rate per night and revenue per available room as well.

Downtown's largestgains have been seen in room rates - the average room rate in DowntownCincinnati is now $123.49 compared to $89.72 in 2008.  Comparatively,room rates in the rest of the region have remained somewhat stagnant. 

Whilesome of downtown's success was predicted with large conventions bookedyears in advance, higher than expected room night consumption by someof those conventions have helped raise the numbers tremendouslyaccording to DCI.

Most recently, the Garfield Suites Hotel sold out all of its rooms during the three-day Midpoint Music Festival that took place throughout Downtown and Over-the-Rhine.

"Thiswas our first time partnering with Midpoint, but we had pretty highexpectations going in, and it delivered for us," said Gary Wachs,general manager.

Writer: Randy A. Simes
Photography by Scott Beseler
Stay connected by following Randy on Twitter @SoapboxRandy


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