Kurt’s quotes (see below for details and context):
Kurt Schoenhoff, vice president of hospitality and brokerage services at Selwyn Property Group, says hotel developers want to be part of mixed-use projects because the surrounding retail makes their properties more appealing to guests.
“They’re very complementary to each other,” Schoenhoff says. “The office component needs the parking during the day, and the hotel guests pretty much only need parking from 6 p.m. to 8 a.m. The hotel use helps the mixed-use developer get a better return on their investment in the parking deck.”
Full Article:
Developers of mixed-use projects uptown are making space for hotels in their plans, and it’s not just because the demand for rooms is strong.
Hotels benefit other uses such as office, retail and multifamily and also help developers generate the return on investment they’re seeking as they undertake such costly projects, real estate professionals say.
Brian Leary, president of commercial and mixed-use at Crescent Communities, says hotels are an important ingredient for its mixed-use projects uptown.
“There’s a certain energy around a hotel that we think is attractive and additive to what we’re trying to do, specifically at Tryon Place,” he says.
Tryon Place, the mixed-use development Crescent is planning for the corner of Tryon and Stonewall streets, will feature a 27-story office tower and a full-service hotel with 300 to 400 rooms. At the intersection of Stonewall and Caldwell Streets, the company is planning another mixed-use project featuring a Whole Foods Market, apartments, retail space and two hotels.
At Tryon Place in particular, Leary says, the hotel makes the office tower more appealing to potential tenants. With companies looking to improve the efficiency of their offices and fit more people into less space, potential tenants at Tryon Place can rely on the conference space at the neighboring hotel rather than incorporating conference rooms into their own layouts, he says. And, of course, for clients or employees visiting from out of town, a hotel next door is very convenient.
“Having that hotel on campus is a tremendous amenity for conducting business in the office tower,” Leary says, adding the hotel will drive business for the projects’ planned restaurants and shops at night and on the weekends, when the office building will be empty.
Kurt Schoenhoff, vice president of hospitality and brokerage services at Selwyn Property Group, says hotel developers want to be part of mixed-use projects because the surrounding retail makes their properties more appealing to guests.
The number of mixed-use developments with hotel sites for sale are limited, however, and as a result hotel developers are paying “eye-popping” numbers for those sites, he says.
In addition, hotels typically lease parking spaces within the project’s parking deck, which benefits the developer and also works well with the office use.
“They’re very complementary to each other,” Schoenhoff says. “The office component needs the parking during the day, and the hotel guests pretty much only need parking from 6 p.m. to 8 a.m. The hotel use helps the mixed-use developer get a better return on their investment in the parking deck.”
Will Boye
Senior Staff Writer
Charlotte Business Journal
