Mainebiz

V O L . X X V N O. I I I F E B R UA R Y 4 , 2 0 1 9 20 A decade of growth of new hotels in Portland and southern Maine doesn't seem to have an end in sight, thanks to a growing market of consumers attracted to the region both as a lei- sure and business destination. Observers say they continue to see opportunity in new-hotel construction, even though growth in occupancy rates has slowed somewhat. Portland Foreside Development Co. principal Casey Prentice, whose company is planning a West Elm brand hotel at 58 Fore St. in Portland, says he's bullish on Portland's hotel market and the average daily rate charged. "Despite the recent development activity, we have seen occupancy hold and ADR continue to rise," says Prentice. "We believe the Portland peninsula continues to experience an undersupply of rooms, specifically in the upper upscale and luxury mar- ket segments." Still, developers say they're closely monitoring the market. "Anybody in the hotel business is always worried about oversupply it the market," says Jim Brady, president and director of Fathom Cos., which is planning a hotel at 1 Center St. in Portland. "at has been one of the biggest concerns people have expressed with the Portland market: When will we have built more supply than there is demand? I heard the same thing when we redeveloped the Press Hotel, that there was no way the market could absorb 110 rooms. I believe that's proven to be wrong." P H O T O / T I M G R E E N WAY Hotel development is booming But questions abound about how much is too much B y L a u r i e S c h r e i B e r S O U T H E R N M A I N E F O C U S MAINE HOTELS REV UP REVPAR S O U R C E : MEREDA, Smith Travel Research, PwC Since the recession, Maine hotels have seen a steady gain in revenue per available room (RevPar), which takes into account the room rate and overall occupancy rate. S O U R C E : MEREDA, Hospitality Maine, Daigle Commercial Group SALES GROWTH AT MAINE'S HOTELS AND RESTAURANTS (BILLIONS) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 $2.5 $2.7 $2.8 $2.9 $3.0 $3.2 $3.4 $3.6 $3.8 $4.0 $49.24 $53.27 $56.74 $58.46 $62.64 $65.93 $67.88 $73.84 $77.45 $83.10 N E W H O T E L R E N D E R I N G / C O U R T E S Y O F A R C H E T Y P E A R C H I T E C T S Bateman Partners LLC is developing a Cambria Suites hotel at the Shipyard Brewing Co. property at 25 Hancock St. in Portland. The beer-themed "brewtel," with 105 rooms, is in the planning stage and is part of a 211,000-square foot redevelopment of the Shipyard property. Jim Brady, president and director of Fathom Cos., which is planning a hotel at 1 Center St. in Portland. Anybody in the hotel business is always worried about oversupply it the market. … I heard the same thing when we redeveloped the Press Hotel, that there was no way the market could absorb 110 rooms. I believe that's proven to be wrong. — Jim Brady President and director, Fathom Cos.

• Cover