My March Madness bracket is busted. But that’s what I get for thinking Duke had a chance, Syracuse would fall early without Melo or Michigan State would make shots … at all … from anywhere on the floor.
But just because I’m dwelling in the cellar in my pools (I’m being defeated by, among others, a 5-year-old girl as well as my sister-in-law who chooses teams based on “how their nicknames sound in my head”) doesn’t mean hoteliers can’t win when the NCAA Men’s basketball championship tournament is over and done.
We’ve already seen a boost in several tournament host cities thus far. Nashville, Tennessee, which hosted second- and third-round action two weeks ago, led all the top 25 U.S. markets with gains of 20.5% in occupancy, 13.7% in average daily rate and 37% in revenue per available room for the week ending 17 March, according to STR data.
Ohio University mascot Rufus the Bobcat makes a plea to the gods above as the men’s basketball team loses in the third round of the championship tournament.
More recently, Atlanta (+10%), Boston (+5.1%), Phoenix (+10.8%) and St. Louis (+9.1%) all saw notable RevPAR gains last week when they hosted the third and fourth rounds of the tourney.
That spells good things for New Orleans, which hosts the Final Four tomorrow and championship game Monday evening.
Previous championship weekend host cities have seen EXCEPTIONAL increases in the three key metrics, according to analysis conducted by STR wunderkind Alex Smith—who, I regret to inform you, graduated from the dreadful University of North Carolina Tar Heels, which took down my beloved Ohio Bobcats in the Sweet 16. (I’m still not over the loss.)
The chart below shows the increase the previous three host cities saw over the comparable Saturday-through-Monday the year prior.
I’ve highlighted the increases in green typeface—as if you needed extra help appreciating their sheer enormity. Those numbers are Texas big. George Muresan big. Champion-eater-Takeru-Kobayashi-appetite big.
A 403.7 RevPAR increase on Sunday for Indianapolis when it hosted the Final Four in 2010? Are you kidding me?!
So, like I said, NOLA has a lot to look forward to. Not only if Louisville goes on a run and makes things interesting.
Now on to the usually goodies …
Stat of the week
0%: The percentage increase of U.S. hotel property values for the month of February, according to Green Street Advisors’ Commercial Property Price Index. Hotel property values have been stuck at the same level since November.
On the plus side, property values are up 32.5% from this time two years ago.
Quote of the week
“Now, New York … there’s a little noise in New York now, and we’re going to take a look and see if we can put something … maybe in Manhattan and be able to do maybe something with (the Jacob K. Javits Convention Center) and us and a big place and put our complex in there. If the government wants it, we’d be interested in doing it.”
—Mike Leven, president and COO of Las Vegas Sands Corporation, on the company’s prospects for expansion in the United States, as reported in “LV Sands continues quest for growth.”
Leven’s comments are tied to swirling talks about repositioning the Javits Center if New York builds a massive new convention facility in Queens. Frankly, I have a hard time seeing it happening. Leven admitted as much when he said, “The potential for us in the United States is pretty limited because there aren’t a lot of places where you can put an integrated resort of our size and our financial investment and get a return.”
Comment of the week
“Brands work to improve franchising for owners? Really? Hyatt sueing (sic) for unstarted projects. Hilton, Marriott, IHG all charging interest on late franchise fees. No assist, no reductions, costs rising, pressure to renovate consistantly. (sic)”
—Commenter “gcapital” sharing his thoughts on the article, “Brands work to improve franchising for owners.”
Email Patrick Mayock or find him on Twitter.
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