Upscale, Upper-Midscale Hotels Gushing from Pipeline

PORTSMOUTH, NH—If you’re looking to get into the industry in the upscale and/or upper-midscale segments, you’re going to have a lot of company.

Analysts at Lodging Econometrics (LE) report the upper-midscale category stands at 2,060 projects in the pipeline, representing 205,270 rooms, and has the largest project count of all chain scales in LE’s total construction pipeline. The second largest is the upscale category, which has 1,258 projects representing 162,609 rooms. Together, the two pipelines compose 67% of all projects in the total pipeline, according to LE.

LE data shows the brands with the largest number of projects in upper-midscale are Holiday Inn Express with 426 projects/39,393 rooms; Home2 Suites by Hilton with 343 projects/35,845 rooms; and Hampton Inn with 322 projects/33,109 rooms.

In upscale, the top brands are Residence Inn by Marriott with 187 projects/23,617 rooms; SpringHill Suites by Marriott with 149 projects/17,182 rooms; and Hilton Garden Inn with 134 projects/17,734 rooms.

LE forecasts the two chain scales to have the highest guestroom growth rates through 2018, with upper-midscale increasing by 4.9% in 2017 and 5.3% next year, and upscale by 5.4% this year and 5.6% in 2018.

Hilton is adding to the mix, opening a new dual-brand property in the South Park district of Charlotte, NC. Located at 4808 Sharon Rd. near South Park Mall, the hotels include a Hilton Garden Inn and Homewood Suites by Hilton and add a total of 270 rooms to the area.

Developed and owned by a joint-venture composed of a Crosland and Tate partnership, two long-time Charlotte families involved in local real estate, and Chartwell Hospitality, a Nashville, TN-based hotel owner/developer/operator. Both properties are managed by Chartwell Hospitality LLC.

“Boasting attractions like Freedom Park, BB&T Ballpark, the NASCAR Hall of Fame and several museums contributing to the city’s versatility and vibrancy, the Charlotte region attracts visitors for many reasons,” said John Bensing, the property’s GM, who noted the dual-brand property provides diverse accommodations for visitors with varying needs.

The Spectrum Center, where the Charlotte Hornets play, and Bank of America Stadium, which is home to the Carolina Panthers, is also less than seven miles away.

The property has two distinct lobbies and dining areas, as well as a 24-hour fitness center and outdoor heated pool. It also offers 2,500 sq. ft. of meeting space that can accommodate up to 120 people. Each hotel offers the brands’ signature amenities and features.