A 6th new hotel downtown

[Townsend]

BOk to Blue Dome seems like a very long walk as there is nothing at street level except parking and building lobbies. Looks like a long desolate stretch. Need something to liven it up and inform people of what is just down the road.

BOk to Brady isn't really all that inviting. The bridge is nice but you cross it and it looks like little to nothing is there except milk and the homeless. Need some good signage along the way letting people know what is really over there.

Blue Dome to Pearl is a stretch IMO. As much as I walk downtown, I would likely drive from downtown to Pearl.

[BKDotCom]

I occasionally walk from DT to the Pearl.
It has a bit of variety to it and walking thru Central Park is nice.
If the "East End" ever gets something going, It could be a very nice walkable corridor
It's better than walking the parking lot district.
6th street has a lot of potential.

[davideinstein]

The problem with the Downtown/Pearl walk is the stretch from 75 to Detroit...because it literally looks like Detroit.

[brettakins]

"Hotels are no sleepy business for the Tulsa area"

The Tulsa area is becoming a hotbed for hotel competition. More than 20 hotels planned by local developers will crop up in the area through 2016.

More could arise if out-of-state developers also have plans for the Tulsa area.

Observers point to the biggest build out of the hotel industry in the area that they've seen in quite some time. Chalk it up to a growing economy, increased activity in downtown Tulsa or the desire for new hotels.
Economic upswing

Mike Craddock, a hospitality specialist with First Commercial Real Estate, tracks the growth of the hospitality market. He noted that about every 10 years the Tulsa area adds about 30 percent more new hotels to the market.

The area's current hotel growth spurt, however, is a bit different because of the extended economic recovery the area has experienced since 2008. Projects that were delayed in the past three to four years are now coming to fruition while other new projects are also developing, he said.

During downturns in the 1980s and 1990s, hotels saw drops in both occupancy and room rates. With this past downturn, hotels experienced a drop in occupancy, but the room rate either leveled off or grew a little bit.

"That was a key element in the current growth or expanding of the market, because the rate growth actually increases your bottom line at a much higher rate than occupancy rate," Craddock said. "Rate growth goes directly to bottom line. It's a very good indicator that your market is pretty healthy."

As room rates stayed high, most properties that were in "trouble" were able to work out of that with good management and good ownership.

"Our economy is rebounding, and so now is the time to build as the prices increase," said Brittany Sawyer, executive director of Metro Tulsa Hotel & Lodging Association.

She points to a national trend of hotel growth now that the economy is improving and travel is rising.

In 2009, the United States had 50,800 hotel properties with 15 or more rooms, and an average occupancy rate of 54.7 percent, according to the American Hotel and Lodging Association. By 2013, the number of hotel properties had expanded to 52,887 with an average occupancy rate of 62.2 percent.

Nationwide sales were $163 billion in 2013 versus $127.20 billion in 2009 and nearly $141 billion in 2008 when the Great Recession was in full swing, according to the association.

"A lot of times we follow the national trend as well, as far as the travel industry goes," Sawyer said. "It's not just leisure travel. It's also business travel, which is a huge market in Tulsa. So when people are traveling more, sales are up." Sawyer said.

Through July 2013, the Tulsa area had 148 hotels and an occupancy rate of 58.3 percent, which was up 7.6 percent from the same time in the previous year, according to Smith Travel Research.
'Timing is everything'

Timing is everything with any business, said Paresh "Pete" Patel, president of Tulsa-based Promise Hotels.

And he thinks the next couple of years will be the best time to open his hotels.

Promise Hotels currently has eight hotel properties, with plans for five new hotels in the Tulsa area over the next couple of years, including one near ONEOK Field and two within a block of the BOK Center. Plans for another hotel also are being finalized but remain confidential for now, Patel said.

Among his current hotels are two that serve the Tulsa International Airport, including the Clarion Inn Tulsa and the Hilton Garden Inn. Construction is under way on hotels in Tahlequah and Claremore.

"Hotel occupancy has grown tremendously just for the downtown market as well as for Tulsa in general," Patel said. "We also feel like that we have the right brand in our industry. Besides having the right location, you also have to have the right brand. Hilton and Holiday Inn are premier brands in the select service industry that we focus in."
Designs on downtown

The momentum of downtown Tulsa has caught the attention of hoteliers such as Pete Patel. There are events at the Brady District, the BOK Center and Cox Business Center. Also, downtown companies are expanding, which results in more business travel.

Weekend activity has increased in the past two years ago. Four years ago, investing in a downtown hotel would have been a bad idea, Patel said.

But the area has been through a tremendous amount of change.

"I think that when these hotels open in the next year and a half to two years, there will be such a huge demand for lodging in that area," Patel said. "That is what has attracted me. We hope that the demand continues."

Patel's Promise Hotels has plans for a $16 million, 134-room Hilton Garden Inn that will wrap around the Oil & Gas Journal building on the southeast corner of Second Street and Cheyenne Avenue, according to a previous Tulsa World report.

The hotel, to be built by Tulsa-based Promise Hotels and The Ross Group, will include mixed-use space with room for retail, restaurants, event space and a rooftop patio overlooking the BOK Center.

A Holiday Inn Express slated for the Brady District is expected to occupy a large portion of the block bounded by Archer, Detroit, Elgin and the railroad tracks, according to a Tulsa World report. A Hampton Inn & Suites will be located at One Place near the BOK Center.

Andy Patel, president and CEO of Anish Hotels Group, said his company has six hotels planned for the area, including two downtown — one that will be located in the Parker Building downtown at 8 E. Third St.

Andy Patel is the developer of an Aloft Hotel at U.S. 169 near 71st Street and the Hampton Inn near near Tulsa Hills Shopping Center.

"I feel like we're right in the middle of all these communities around the business community and leisure community and the events," said Andy Patel, no relation to Pete Patel. "... At the same time, downtown is getting a little bit better momentum than we saw a few years ago. We are taking a risk. It's the chance we also have to take."
Hotel bonanza

Can the area support all the hotels being built?

Tulsa has benefited from the growth of the Native American hospitality market and new commercial development areas that have accompanied growth of surrounding areas such as Owasso, Jenks and Glenpool.

"Those are markets that didn't exist years ago," Craddock said. "As cities and towns grow and you have new infrastructure and new businesses, you will see a growth in the hospitality industry. So it may seem like there is a large number of property, but we also have expanded the market potential in areas of hospitality."

Downtown, in particular, has been a good growth market for hotels. And having more downtown hotels will give customers a greater choice of room prices.

"I think it's advantageous when we increase the number of hotels in the market because that allows Tulsa to be more competitive with other cities when attracting conventions and other business to the market," Sawyer said.

Pete Patel is optimistic about the future. His group is building relatively small hotels that will have anywhere from about 106 to about 134 rooms, which won't make a huge dent in the market. If large 600- to 800-room hotels are being built, then that would add too much inventory and cause concern, he said.

Roshan Patel, director of development for Leisure Hospitality, believes that the Tulsa market can support more hotels and his company has at least four new hotels planned for the Tulsa area. Leisure Hospitality recently broke ground on a Hampton Inn & Suites in Claremore, and a Holiday Inn Express & Suites will soon open in Glenpool.

"Our guests want a different type of hotel," said Roshan Patel, whose father, Robert, founded Leisure Hospitality. "They are not looking for the same experience. They are not looking for the same hotel. We're going to different niches — extended stay, limited stay, corporate stay. You have different types of hotels to cater to different types of guests."

Andy Patel said the hotel industry should do well up until 2016 and 2017 before possibly topping out. He noted that the northeast Oklahoma market isn't as strong as he noticed in other areas but building in the area is convenient for his Tulsa-based organization.

"We have good brands behind us, and being located here it helps us on the cost control and even on the construction and operations side," he said. "So we can justify our lower market revenue."

Anish Hotels Group's upcoming projects include three in Tulsa, one in Broken Arrow, Stillwater and Sand Springs.

"We have so many great developers ... But at the same time, it's very competitive for a smaller market," Andy Patel said. "That is a concern — that we are growing too fast, our supply is growing too quickly and the demand will not be able to catch up."

"I feel confident with my team, my company, our workability, and also the locations and the brands we provide. I feel good there, even though we feel like our profit margin will shrink. But we'll have to live with it."

The hope and goal is that all hotels will do well in the area. Even business partners, bankers, brokers think the hotel industry is well positioned, Andy Patel said.

"Even our competition should do well," he said. "There is no negativity to our industry."

Several hotels destined for the Tulsa area
Hotel |   Location |   Estimated completion date |   Developer

Home 2 Suites by Hilton    Tulsa Hills Shopping Center    Fall 2015    Anish Hotels

Spring Hill Suites by Marriott    Tulsa Hills Shopping Center    2015    Leisure Hospitality

Residence Inn by Marriott – Tulsa    Next to Holiday Inn Express just off I-44 and Yale    N/A    Champion Hotels

Holiday Inn Express    Near I-44 and Yale Avenue    2015    Champion Hotels

Value Place & Suites    11000 E. 45th St.    2015    Titleist Lodging Group

Hilton Garden Inn    At Bass Pros exit in Broken Arrow    Fall 2015    Anish Hotels

Broken Arrow Hotel & Convention Center    TBA    N/A    Stoney Creek Hospitality

Holiday Inn Express Sand Springs    Highways 51 and 97    January 2015    Anish Hotels

Holiday Inn Express & Suites Glenpool    Next to Glenpool City Hall/Convention Center    July 2014    Leisure Hospitality

Fairfield Inn & Suites by Marriott Glenpool    TBA    2016    Leisure Hospitality

La Quinta Inn & Suites Owasso    TBA    N/A    Champion Hotels

Holiday Inn Express & Convention Center    1400 Country Club Drive, Claremore    2015    Promise Hotels

Hampton Inn & Suites Claremore    TBA    2015    Leisure Hospitality

La Quinta Inn & Suites in Claremore    774 S. Lynn Riggs Blvd.    N/A    K.T. Patel

Holiday Inn Express & Suites Tahlequah    On S. Muskogee Ave. where highway loops    2015    Promise Hotels

River Spirit Margaritaville Hotel    River Spirit Casino, 81st Street and Riverside Parkway    2015    Creek Nation

Holiday Inn Express    Near Woodland Hills Mall    2016    Leisure Hospitality

Comfort Inn & Suites    West 61st Street and New Sapulpa Road    N/A    Sapulpa Hospitality LLC

http://www.tulsaworld.com/business/retail/hotels-are-no-sleepy-business-for-the-tulsa-area/article_30ff2d8a-c48c-5cea-b6a0-22da1c19c717.html

[Conan71]

I'm trying to figure where you would fit a hotel at the intersection of Highway 97 and 51, unless they are referring to the intersection of 412 and 97 in Sand Springs.

[Tulsa Zephyr]

I'm trying to figure where you would fit a hotel at the intersection of Highway 97 and 51, unless they are referring to the intersection of 412 and 97 in Sand Springs.

It's actually just east of the intersection of Highway 97 and Morrow Road (a couple of blocks south of 412).  They started on it a couple of weeks ago and is going up pretty fast.  It's part of the RiverWest development (bordered by 412, Morrow Road, Main Street and Oklahoma 97).  There is even talk of renovating the old power plant on Morrow Road to build a brewery and restaurant.

[Conan71]

It's actually just east of the intersection of Highway 97 and Morrow Road (a couple of blocks south of 412).  They started on it a couple of weeks ago and is going up pretty fast.  It's part of the RiverWest development (bordered by 412, Morrow Road, Main Street and Oklahoma 97).  There is even talk of renovating the old power plant on Morrow Road to build a brewery and restaurant.

That makes sense.  The brewery has been rumored for a couple of years that I'm aware of.  Not sure how they are coming on getting their funding together.

[Tulsa Zephyr]

The brewery/restaurant will probably open around the same time "The American" statue gets built...

[carltonplace]

The brewery/restaurant will probably open around the same time "The American" statue gets built...

oooh, that soon!

[BKDotCom]

oooh, that soon!

Didn't they supposedly have some sort of groundbreaking?   
We'll have giant kitschy statue before you know it (according to the statue people).

[Townsend]

Didn't they supposedly have some sort of groundbreaking?   
We'll have giant kitschy statue before you know it (according to the statue people).

"Soon"

http://www.theamerican.com/

[DowntownDan]

As a person who has lived in Sand Springs, why would anyone visiting the area want to stay there?

[Tulsa Zephyr]

Especially now that K-Mart is beginning their liquidation sale in a couple of weeks...

[Townsend]

As a person who has lived in Sand Springs, why would anyone visiting the area want to stay there?

The nightlife

[AquaMan]

River bottom parties.