While developers often ask “where’s the next Nashville?” or “where’s the next Austin?” there is still ample opportunity in the established hotel markets. The efforts of major urban centers to expand their downtown footprints through new developments (convention centers, sports venues, etc.) and revitalization projects continue to create more demand for hotels, and in most circumstances the need for new hotel rooms. However, developers often voice their concern over the lack of top-tier brand availability. As a result, developers focused on specific locales must decide between two risky prospects: a) selecting an unproven, fledgling brand in a primary location, or b) finding a site in a secondary, up-and-coming area where they can raise one of the premium brand flags.
The mantra for many hotel investors is “best brand available,” with the mindset that a strong brand will often trump a “B” location.