Finance & DevelopmentMarket ReportsFive Up-and-Coming Secondary Hotel Markets

Five Up-and-Coming Secondary Hotel Markets

In 2008, Forbes magazine called Oklahoma City the most recession-proof city in the country. When put to the test during the past five years, the city has, indeed, lived up to that title.

“The Oklahoma City market, specifically the downtown area, has been a boom market for several years,” says Jagdish “Jag” Patel, vice president of operations for hotel management at NewcrestImage, which is scheduled to open a Holiday Inn Express in downtown Oklahoma City in the second quarter of 2014. “Occupancy rates
are climbing.”

According to Patel, occupancy-rate percentages are in the upper 70s, and the average daily rate is between $130 to $140 for a limited-service hotel.

Patel says the Bricktown Entertainment District section of Oklahoma City has been a big draw because it offers food, bars, and entertainment within walking distance. Also, major companies such as Devon Energy and Chesapeake Energy are a boost to the local economy and provide increases to the average income.

During the first quarter of 2013, there were nine projects under construction in Oklahoma City, adding 1,067 rooms to the current supply of 23,073 rooms. In the total Oklahoma City pipeline, there are 29 projects, accounting for 3,250 rooms.

Upward salary trend
In the past five years, there have been more than 21,000 new jobs created within Oklahoma City, and the average salaries of those jobs is $5,000 higher than the annual wage within the city.