91视频

Buzz about Portland鈥檚 potential for hotel development is picking up around the country, according to Travel Portland executive vice president Brian McCartin.

鈥淧ortland has always been a destination that a lot of developers have kept their eye on,鈥� he said. 鈥淲e continue to hear from them, asking questions and really wanting to understand the market.鈥�

As the city鈥檚 popularity has increased, so has the demand for hotels. With the economy improving slowly, local and national developers alike are pursuing multimillion-dollar projects to address that demand. It鈥檚 happening at a rapid rate 鈥� in the last year, plans were presented for six new hotels in Portland鈥檚 central city area.

鈥�(Portland) has a very strong hotel market that has recovered well from the challenges of the last few years,鈥� McCartin said. 鈥淪o any developer is going to look at (the) market and do an assessment and enjoy some of that business.鈥�

Hotels in the central city area, stretching from the Pearl District through downtown to the east side鈥檚 Willamette River edge, had an occupancy rate around 80 percent for the past six months, according to McCartin. Those hotels are forecast to see a 9.9 percent boost of revenue-per-available-room by the end of this year, according to PKF Hospitality Research. That is nearly three percentage points higher than the national rate.

By the end of 2013, the national hotel occupancy rate is expected to be 62.1 percent, according to PKF; the Portland occupancy rate is expected to be nearly 5 percent higher. Additionally, room inventory for the nation鈥檚 10 largest markets is expected to increase 1.7 percent in 2013; room inventory growth in Portland is expected to meet or exceed that rate.

Most hotel development is occurring in the central city area, where the demand is, said Yogi Hutsen, president of Seattle-based Coastal Hotel Group, which owns a hotel in the South Waterfront District.

鈥淲e鈥檝e seen particularly in the downtown market (of Portland) a real strength,鈥� he said. 鈥淚nside that engine, it鈥檚 really healthy and vibrant. As you get out of the city, it鈥檚 not quite as strong.鈥�

For now, Coastal does not have any plans to construct a new hotel in Portland; however, many other developers do. None will talk about those plans, however, because most of the projects are either in design review or preparing to enter that stage.

Most activity is happening in the Pearl; two hotels are confirmed for the neighborhood, while another is rumored for it. In November, construction started on a $49 million, 223-room Residence Inn by Marriott on Ninth Avenue; it鈥檚 being developed by Williams & Dame and Associates.

An eight-story, 220-room hotel is being planned for a Northwest Everett Street property where MTV鈥檚 鈥淭he Real World鈥� was filmed earlier this year. That project is being developed by Raymond Management Co., a Wisconsin-based developer.

Also, rumors are swirling about a hotel being built near Northwest 11th Avenue, according to Kate Washington, communications chairwoman of the Pearl District Neighborhood Association.

鈥淭he Pearl is finally getting hotels because there鈥檚 a need,鈥� she said. 鈥�(It was) determined that the Pearl is a good market for more middle-income apartments and middle-income hotels, not expensive boutique hotels.鈥�

Elsewhere in the central city, Williams & Dame is planning to construct a six-story, 203-room hotel in the Riverplace neighborhood. And Portland-based 8T8 Hospitality, which has developed hotels in the past, is negotiating with the Portland Development Commission to purchase an Old Town parking lot to potentially transform into a hotel.

In addition, a Grove Hotel renovation is moving forward from funding delays, and financing details are being worked out for the headquarters hotel project.

The hotel trend is occurring in most major cities across the country, said Chris Kraus, senior vice president of PKF Hospitality Research.

鈥淚t鈥檚 really just a product of the market starting to come back,鈥� he said. 鈥淒emand levels are strong enough and back at their long-run averages for hotels to increase their daily room rates, which increases profitability 鈥� that鈥檚 why you鈥檙e seeing this trend.鈥�

Portland鈥檚 unique qualities are contributing to demand, McCartin said.

鈥淚ts culinary scene, friendliness and affordability all make it a destination city,鈥� he said. 鈥淪ome (developers) are feeling confident enough about this market to look a little deeper.鈥�