Denver Is Experiencing A Hotel Boom With Openings, Expansions And Renovation
by Glen Richardson
Super Size: This 1,500-room megaplex being built near DIA will be the state’s largest hotel. The sheer size of the Gaylord Rockies Hotel is likely to alter the Valley’s hotel, convention and spa landscape.
Cool Hand Hotel: The 3,600-sq.-ft. lobby of the Maven Hotel creates a seamless flow between work and play while serving as a neighborhood hub.
Denver is experiencing a hotel boom ignited by record-breaking occupancy that is escalating expansion and renovation in dozens of Valley neighborhoods. Moreover the upward trajectory in construction is forecast to continue despite some hiccups in recent months.
“In our lifetime, we’ve never seen this kind of demand, and it’s not slowing down,” MGM Grand’s Michael Dominguez told a meeting-convention group at Cherry Creek’s Halcyon Hotel this summer. Denver’s hotel occupancy rate of 73.7% is far above normal and nearly eight percentage points higher than the national average of 66%. Dominguez warns, however, that hotels are limiting service. “Nobody is building ballrooms.”
Denver’s hotel supply is forecast to increase by 4.6% this year, well above the 2% increase that is expected nationally. The 201-room Jacquard Hotel in Cherry Creek North is expected to finally open by September, bringing to five the number of hotels in the 16-block district. The 233-room Hilton Garden Inn Union Station is likely to be the next downtown hotel to open. By year’s end the megaplex 1,500-room Gaylord Rockies is scheduled to debut off of Pena Blvd. near DIA. Due to its sheer size it is almost certain to alter the Valley’s hotel, convention and spa landscape.
Growth Above 5%
Like Denver, hotel properties in other smaller cities such as Tampa, Charlotte, Phoenix, and Portland, are doing well. These are places where demand typically outpaces new construction and occupancies are at or near record high. Denver’s occupancy rates normally average around 65% over most 12-month periods. The 12-month occupancy rate in Denver is now more than 80% according to hotel research from CoStar Commercial Real Estate.
Demand for hotels in Denver is expected to grow 5.1% during 2018, pushing occupancy to new highs. Not only is demand expected to continue increasing this year but also through next year at more than twice the national average.
A total of 31.7 million visitors came to the Mile High City in 2017, a new record and the 12th consecutive year of growth. Denver gets only about 20% of the state’s visitors but accounts for half of all in-state tourism spending. Revenue last year was $6.5 billion. To be sure, the Valley’s abundant sunshine and outdoor recreation get a great deal of credit. Nevertheless — just as with the apartment boom — the so-called “green rush” of cannabis fans are luring a significant number of the city’s tourists, including mountain traffic headed to Denver hotels.
Third In Nation
Developers had 4,100 new hotel rooms under construction in 2017, ranking it fourth busiest city for hotel development. This year STR Hotel Market Data says there are 4,672 new hotel rooms under construction, ranking Denver third in the nation for most new hotel construction. Current U.S. leader
Creek Cool: Cherry Creek’s new Moxy Hotel adds a bright splash along Josephine St. The metal screening and random wood panels give this project a unique touch.
s are Nashville and Seattle.
“I think it’s almost impossible to say that Denver isn’t experiencing a hotel boom at the moment,” say residents who aren’t sure why. Others proudly proclaim Denver is becoming a very big U.S. tourist market because “what’s not to love about this city?”
Across Denver’s developing neighborhoods boutique hotels, like the Born, Maven and Moxy, are redefining the hospitality industry and filling a niche in a wide-ranging construction boom that is bringing dozens of new hotels and thousands of guest rooms to the city. The new aim developers say “is to lure travelers and entertain locals at the same time.”
Social Hubs
Hotels being built here now are becoming social and entertainment hubs, calling for flexible public spaces that provide a destination for travelers while also assimilating into the city’s local culture and its diverse neighborhoods. The building and interior, developers say, should be inviting yet uncommon enough to transport people from their daily routines.
Builders are working with art curators from the beginning of a pro
Ramblin’ Rose: One-of-a-kind touches include a custom, hand-carved hardwood front door make the new-yet-old-looking Ramble Hotel at 25th and Larimer a sparkling space.
ject to ensure art integrates fully into the design, instead of being an after-thought. That was the case with the recently opened Moxy Hotel in Cherry Creek. With 775 artworks and objects incorporated throughout the 170-room hotel, there’s a new surprise around every corner. The design and art work together to enhance the fun and funky millennial-minded concept that emphasizes social interaction. A boutique concept by Marriott, the building infuses the character of the surrounding upscale neighborhood while staying true to its “heart of a hostel” mindset.
The 50-room Ramble Hotel housed in a new-yet-old-looking brick building at 25th and Larimer is another case in point. Ryan Diggins of Gravitas Development Group added one-of-a-kind touches include a custom, hand-carved hardwood front door, chicken-wire glass from Rockefeller Center, and a grand lobby bar built by local craftsman Brian Trybus. Furthermore, LA’s Avenue Interior Design incorporates elegant furnishings, fabrics and accessories. At Sage Hospitality’s 172-room
Hybrid Hip: A trio of developers wants to build a hybrid hotel in RiNo, with 161 units renting for as short as a night or as long as a year.
Maven Hotel in the Dairy Block public space has been taken to an imaginative artistic level. The hotel’s 3,600-sq.-ft. lobby creates a seamless flow between work and play while serving as a neighborhood hub. It connects two eateries to an adjacent office building and can also serve as an adaptable event space or a vendor alley while also providing numerous dining options. Guest rooms feature a rich color palette and loft-style décor with high ceilings and large windows.
What’s Next?
A trio of local developers is proposing a hybrid residential complex in RiNo, with 161 units renting for as short as a night or as long as a year. Peak Development Group, Slipstream Properties and Kaplan Cos. want to build the yet-to-be-named eight-story project on Walnut St., a short walk from the 38th and Blake light rail station. Some floors would have units rented on a nightly or weekly basis, the companies say. Units on the remaining floors would be for more long-term tenants. The units would be a mix of studios and one-bedrooms, ranging in size from 350 to 650-sq.-ft. The three firms purchased the 0.32-acre triangular parcel at 3724 Walnut St. for $2.1 million in June. The parcel includes a two-story building, constructed in 1890, that the developers plan to preserve, with new construction flanking it on both sides. They’ve since spent another $1.1 mill
Spring Elements: Marriott is building the Element Hotel with restaurant at 14th Ave. & Elati that’s expected to open next spring.
ion on two adjacent parcels.
The Rossonian — an unoccupied Five Points landmark — will be renovated into a 41-room boutique hotel, complemented by a basement jazz club and ground floor restaurant-lounge. The eatery-bar venue will be named Chauncey’s for Denver basketball legend and project partner Chauncey Billups. Developer Paul Books plans to add a fourth floor, housing seven rooms and balconies on top of the existing three-story building. Palisade purchased the hotel in August for $6 million.
Here are a few other new hotels currently on the drawing board: Element Hotel by Marriott is building a 157-room studio, 1 and 2-bedroom inn with restaurant that’s expected to open at 14th Ave. and Elati next spring. Plans have been filed to build a 150-room Ballpark Hotel at 2250 Blake St. Also a 546-room Focus Hotel is slated for a 2021 debut at 14th and Stout. Finally, GFI Development is planning to build an Ace Hotel on 19th Ave. between Grant and Logan.