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Filtered by Tag: hotel

 
Hotel industry acheives equilibrium

Hotel industry acheives equilibrium

By Brittney Sherman

According to a recent CoStar Hospitality Data Podcast, the month of November marked the “return to equilibrium” for the hotel industry.

As a whole, during the month of November hotel industry RevPAR increased 2.7%, room rates increased 3.8%, and occupancy decreased 1.1%. Breaking those numbers out by scale, upper-upscale RevPAR increased 5% while economy RevPAR decreased by 5%. The luxury chain room rate decreased 0.9% however the room rate for the luxury hotel scale as a whole increased 5%, driven mainly by the impact of the Formula 1 event on the Las Vegas hotel market. TSA posted record travel data during the Thanksgiving week resulting in a much-needed leisure travel surge for hotels at the end of the month.

Projections for December are being based on traditional last minute corporate holiday travel patterns and a plunge in occupancy over the Christmas holiday. What do experts predict for the start of 2024? No growth during the first two quarters of the year, but also no decline; a state of equilibrium.

Listen to the full Podcast HERE.

 
Independent hotel resumes Downtown construction

Independent hotel resumes Downtown construction

By Brittney Sherman

Hotel MOHI is a full-service luxury hotel in the heart of Downtown Morgan Hill on First Street and Monterey Road. Construction of the hotel was forced to stop during the COVID Pandemic due to tightening of lending markets. In 2022, to make the project more financially viable, the hotel was redesigned to accommodate a partial fifth floor and 13 additional rooms, for a total of 73 rooms. The MOHI hotel will include a spa, meeting facilities, and a market-hall restaurant. Hotel construction will resume shortly and is scheduled to be completed by December 2025.

Read the full Press Release HERE.

 
City Council Approves Revisions to the Hotel Incentive Policy

City Council Approves Revisions to the Hotel Incentive Policy

By Brittney Sherman

At the August 17, 2022 City Council Meeting, Economic Development Director Matt Mahood presented revisions to the Hotel Incentive Policy (HIP) to allow for greater access and participation from all citywide hotels.

The revisions unanimously approved by the City Council, included the following:

-Adjust the Baseline TOT year to FY 2019/2020, lowering the threshold for most hotels to participate.

-Remove the requirement for existing hotels to increase in chainscale in order to participate in the program.

-Increase the maximum rebate for existing hotel renovations from $100k to $250K.

-Include an optional 5-year extension of the rebate timeline, to be approved by City Council, at a reduced rebate rate of 33%

There were no significant changes to the HIP as it relates to new hotel development.  New hotel developments are still eligible for a TOT rebate based on 50% of the cost of off-site improvements. 

The Economic Development team believes the approved revisions to the HIP will open the door for additional reinvestment in the existing Morgan Hill hotels and assist with the recruitment of new hotels. To read the updated Hotel Incentive Policy click HERE! Read the updated Hotel Incentive Policy HERE!


Have questions? Contact City of Morgan Hill Economic Development Director Matt Mahood at Matt.Mahood@morganhill.ca.gov

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