Market Uptick Prompts Plans to Build 2 Hotels on Olentangy Rd.

Hotel occupancy in the Midwest continues to recover from the low levels of the recession. In Ohio it rose to 56.5 percent, according to Marcus&Millichap. The increase is a result of a decline in available rooms.

Ohio’s recovering hospitality market is motivating developers to start building new hotels in the Columbus area. According to Columbus Business First, two such projects will start in the near future along Olentangy River Rd.

Sintel Hotel Group Inc. plans to start construction late this year on a 95- to 98-key hotel at 3121 Olentangy River Rd. The $12.5 million, eight-story property will include a two-level parking structure with spaces for 99 vehicles and meeting space that can accommodate up to 75 guests.

Sintel, which owns the nearby Holiday Inn Express at 3045 Olentangy River Rd. plans to unveil the hotel’s flag next month.

Not far from the Sintel project, David Patel, a local hotel investor and operator, plans a May construction start for an $18.5 million Hampton Inn & Suites. Located on a long-vacant site at 3160 Olentangy River Rd., the hotel would include 36 two-room suites, 114 standard guest rooms and meeting space for up to 100 guests. Brackett Builders Inc., the general contractor, is expected to complete construction next year.

The announcements of the new projects coincide with steady improvement in the hospitality market. According to Marcus & Millichap Real Estate Investment Services Inc., occupancy has risen to 56.5 percent.

In other hospitality  news, the AAA auto club has recently awarded its Four Diamond Award to five hotels in Columbus:

  • the Westin Columbus;
  • the Hilton Columbus at Easton;
  • the Renaissance Downtown Columbus;
  • the Hilton Columbus at Polaris;
  • the Embassy Suites Columbus Airport.

Only 14 Ohio hotels have received the AAA Four Diamond rating.

Chart courtesy of Marcus & Millichap Real Estate Investment Services Inc.