Issue link: https://nebusinessmedia.uberflip.com/i/1522802
HARTFORDBUSINESS.COM | JUNE 24, 2024 21 GENERAL CONTRACTING • CONSTRUCTION MANAGEMENT • DESIGN BUILD PARTNER 21 DEMING ROAD, BERLIN, CT 06037 • (860) 610-1093 • WWW.OLSENCS.COM NEW CONSTRUCTION • TENANT FIT OUT • CRITICAL INFRASTRUCTURE • HEALTHCARE ries for meetings and events venues during the 2023-24 season, which ends June 30. People have had a strong desire to meet in person since the pandemic ended, Murdock said, noting that business travel and lodging have recovered more slowly. Corporate meetings are returning, but "they're going to smaller prop- erties, they're higher-end corporate events, looking for luxury boutique properties," like the Goodwin in Hartford or Delamar in West Hartford, he said. Kozlowski said hotels in the state used to serve 60% business clients and 40% leisure/tourism guests. "Now it's flipped, and leisure is more dominant." Murdock said with some hotels being converted to housing and new builds trending toward the smaller side, there is less inventory in the market, driving up demand for the remaining rooms. Already, the East Haven Homes2 Suites has seen about 70% occu- pancy since opening, Desai said. Reinventing hotels Chris Chiappa, vice president of acquisitions and development for the Connecticut-based Waterford Hotel Group, said hotels are staying relevant post pandemic by finding new opportunities. Chiappa recently participated in a panel discussion during the recent Connecticut Commercial Real Estate Conference in West Hartford, hosted by the Greater Hartford Association of Realtors. His company manages 30 prop- erties and over 3,700 rooms in nine states. Some hotels, Chiappa said, are reinventing themselves, offering two brands under one roof — one focused on extended stay, and the other focused on guests staying one or two nights. Partial conversions to apartments can give hotel owners much-needed capital to renovate and refresh their brand, attracting guests who want a more modern and upscale experi- ence, he said. "I think you're going to continue to see more of those hybrid redevelop- ments," Chiappa said. HARTFORD REGION HOTEL MARKET CONNECTICUT HOTEL MARKET 2019 61.2% 2020 37.7% 2021 53% 2022 59.6% 2023 59.9% AVERAGE DAILY RATES AVERAGE DAILY RATES REVENUE PER AVAILABLE ROOM REVENUE PER AVAILABLE ROOM OCCUPANCY RATE $150 $120 $90 $60 $30 $150 $120 $90 $60 $30 2019 62.8% 2020 39.4% 2021 55% 2022 61.9% 2023 62.2% OCCUPANCY RATE Source: CoStar