Hotel boom in Pittsburgh area expected to continue
Keith McGraw of Concord Hospitality — one of the region's major hotel developers with 14 properties under ownership or management — doesn't believe the Pittsburgh-area hotel market has been overbuilt.
In fact, McGraw and his partner, Mark Laport, have plans to build at least two more hotels in the region during 2013 and to open two others next year that they are developing in ventures with local companies.
Since 2004, 34 hotels with 3,304 rooms opened in the region, according to the Hendersonville, Tenn.-based Smith Travel Research Inc., a hotel research company. There are 254 hotels operating in the region, it reports.
Despite the increase in hotel building, demand for rooms in the Pittsburgh market remains high.
Hotel occupancy in the region — at 69.4 percent — is higher than in 11 comparable cities, including Philadelphia, Cincinnati, Columbus, Detroit, Baltimore and Charlotte, according to industry figures.
Pittsburgh ranks high in revenue per room and average daily room rate, according to Smith Travel.
That indicates demand is strong, meaning hoteliers have less need to discount by offering promotional rates or listing vacant rooms on Internet sites such as Hotel.com, said Kirby Payne, president, HVS Hotel Management of Newport, R.I.
Even so, Pittsburgh remains below many comparable cities in one category — the number of rooms in the region.
There are 24,114 total hotel rooms here, according to Smith Travel. But comparable cities have more — Philadelphia has 44,213; Baltimore, 33,026; and Cincinnati, 27,830.
Experts like Craig Davis, CEO of VisitPittsburgh, say there is room for more hotels here, and J.R. Shaw, executive director of the Washington County Tourism Promotion Agency, says Washington County also could use more hotel rooms.
McGraw's Concord Hospitality agrees and is building more to bridge that gap.
Construction should be completed in March for its 136-room Hyatt House Pittsburgh South Side, being built in conjunction with Oxford Development at the SouthSide Works. A December completion is scheduled for a 120-room Homewood Suites by Hilton, being built in conjunction with DiCicco Development Inc., in the Scott Station Metro Office Park in Moon.
Concord's planned new developments are a five-story Hyatt House with 128 rooms at the former Don Allen AutoCity site in Bloomfield and a 110-room Hampton Inn & Suites at Settlers Ridge in Robinson.
“We traditionally are getting about two or three new hotels opening each year over the past 10 years,” said Rick Strunk, executive vice president of the Greater Pittsburgh Hotel Association.
Two major full-service hotels could be started in 2013, he said. They are a 160- to 170-room hotel planned in Mt. Washington and a 176-room Hilton Garden Inn, part of the Gardens at Market Square development Downtown.
Most of the other hotels to be built in the region next year will be primarily limited-service or extended-stay facilities, he said.
The hotel construction is welcomed by VisitPittsburgh, the region's tourism promotion agency. But if Pittsburgh is to bring major conventions to the area, it must have at least a 1,000-room hotel connected to the David L. Lawrence Convention Center, Downtown, Davis said.
An expanded convention center hotel has been sought by local officials for years, without success.
The Downtown-North Side-Station Square area has 4,566 rooms in 14 hotels. That, however, isn't enough to attract major conventions or meetings to the region, Davis says.
The city does attract conventions, even as far ahead as 2023.
In 2013, Evangelical Lutheran Church in America will meet here and use 8,930 rooms. Also scheduled are the Fraternal Order of Police centennial convention in 2015, which means 19,356 room nights; the Association for Iron and Steel Technology convention (5,793 rooms) in 2016 and Intel International Science and Engineering Fair in 2018 (12,974 rooms), VisitPittsburgh reports.
Pittsburgh's professional sports and college teams attract considerable numbers of out-of-town visitors for their games — and local hotels are the beneficiaries, Strunk said.
An example is the 142-unit Cambria Suites hotel at the Consol Energy Center. Normally, occupancy is 41 percent, but when the Penguins play there, it reaches 70 percent, and when entertainers such as Lady Gaga or Elton John perform, it's closer to 90 percent, hotel officials have said.
These types of performances fill hotel rooms and are one reason why Pittsburgh hotels were listed by Smith Travel as having the top occupancy rate during the period from January through October among cities of comparable size.
Strunk expects most of the extended-stay or limited-service hotels to be built in the region will be in suburban areas, such as Cranberry and Washington County, where Marcellus shale natural gas development has been strong.
The occupancy rate in Washington County's 2,000 rooms has been in the 70 percent range this year, said Shaw. “The county has been underserved in hotel development, although ... you see occupancy rates of nearly 80 percent in recent years.”
There are seven hotels on or near Racetrack Road, which spans North and South Strabane, in Washington County, which services the Meadows Racetrack and Casino and Tanger Outlets, he said.
Two others are being planned there and in two years, there will be nine or 10 limited-stay hotels offering up to 1,200 rooms.
Sam Spatter is a staff writer for Trib Total Media. He can be reached at 412-320-7843 or firstname.lastname@example.org.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Bayer to spin off plastics unit as separate company; employment to remain stable
- Chevron gets first OK from Pa. sustainable drilling group
- Printz: Investor optimism must survive for wealth creation
- U.S. Steel shares jump on turnaround strategy
- Consol, Noble expect at least $325 million from partnership’s IPO
- Bayer plastics unit may be gone
- Fed not budging on rate increase
- UPMC buying New Castle-based Jameson Health System
- Investors applaud central bank’s decision
- Mylan CEO Bresch sets sights on growth
- As U.S. economy pulls ahead, dollar’s strength reaches new highs