Investment

Justifying new hotel supply in a local market depends heavily on competitive set performance, particularly occupancy rates and ADR (average daily rate). These benchmarks help determine whether the market has enough demand to support additional rooms and whether the financial returns can justify the development cost. The right balance of strong demand, rising rates, and limited pipeline competition signals...

The optimal development size and room count for a hotel project depends on the parcel’s physical dimensions, zoning regulations, parking requirements, and the targeted hotel type. Balancing site coverage (building footprint) and parking ratios ensures that the development meets both operational needs and code compliance while maximizing land use efficiency. The goal is to deliver the highest number of...

The most appropriate hotel type for a specific local market depends on key demand drivers such as population demographics, business activity, travel patterns, nearby institutions, and surrounding land uses. Matching the hotel format to the local market ensures alignment with occupancy potential, revenue per available room (RevPAR), and investment yield. Each hotel type serves a distinct guest profile and...

The most appropriate hotel type for a specific local market depends on key demand drivers such as population demographics, business activity, travel patterns, nearby institutions, and surrounding land uses. Matching the hotel format to the local market ensures alignment with occupancy potential, revenue per available room (RevPAR), and investment yield. Each hotel type serves a distinct guest profile and...

Proximity to key demand generators—such as highways, airports, and event centers—is a major factor in determining the viability and performance potential of a hotel or extended-stay site. These locations drive traffic volume, guest demand, and brand positioning. Each use type attracts distinct customer segments, and hotel developers closely analyze these proximities when selecting sites or applying...

Visibility, access, and frontage are critical site selection criteria that support the branding, operational efficiency, and occupancy performance of hotel and extended-stay developments. Hotel brands—whether limited-service, boutique, or extended-stay—use strict site evaluation standards to ensure the property can attract guests, meet logistical needs, and support long-term profitability. These...

Zoning classifications that allow hotel or extended-stay development on a parcel depend on local land use codes, but there are several common zoning categories and overlays that typically accommodate hospitality uses, either by-right or with a conditional use permit (CUP). Understanding these classifications is critical for assessing the parcel’s development potential, entitlement path, and alignment...

Signage opportunities on a dual-frontage (corner) commercial parcel offer a major visibility advantage, but are also subject to strict zoning, design, and safety regulations. Understanding what types of signage are allowed—and where—helps maximize marketing impact while maintaining compliance. Signage strategy must consider placement, size, height, lighting, and visibility standards for each frontage,...

Right-of-way (ROW), utility easements, and sight triangles are critical site constraints that can significantly reduce the net developable square footage of a commercial parcel, especially on high-visibility corner lots. These encumbrances are non-buildable areas that must be reserved for public access, safety, or infrastructure maintenance and must be identified during pre-development due diligence....

Dual-frontage commercial parcels—particularly at corners—require careful planning of parking ratios and access lanes to comply with zoning codes, support circulation efficiency, and accommodate multiple user types such as QSR, retail, or service-based tenants. While dual frontage improves visibility and flexibility, it also introduces additional design and regulatory considerations to manage traffic...