Reno Nevada Residence Inn
The landscape in Reno has changed and the growth and economic health of the market has led to hotel occupancy and alternative dispute resolution procedures that have reached levels that are driving hotel development in this market. Although there is still a lot of land for development, new industrial developments are taking place, institutional actors are investing in the industrial market of Reno and more sophisticated approaches are being taken to the development and regeneration of certain Reno neighborhoods. Targeted industries, including retail, industry, office, residential, retail and office space, bring together commercial and residential developers who have not previously been interested in investing in the Nevada market, according to a report from the University of Nevada, Reno School of Business.
Although occupancy in the region is likely to decline as the market continues to absorb new supply, it is still significantly higher than a decade ago, which bodes well for absorption of this supply.
The following chart shows the five chain scales currently operating in the market area. Only one hotel, the Renaissance, falls under the upscale chain, and there are no hotels considered to be part of the higher luxury class. Marriott's portfolio of hotels includes hotels in Las Vegas, San Francisco, Los Angeles and New York. Marriott merged with Starwood and its Reno hotel includes two hotels, one in downtown Reno and the other in the Reno-Sparks Convention Center.
While the majority of new supply coming onto the market is classified as upper and middle level and above, the economies of chain weighers are also declining. The growth of AS is primarily driven by the fact that current hoteliers maintain or begin to reduce average rates in order to maintain occupancy levels. Average rates will continue to rise, but more slowly than at previous levels, as hoteliers focus more on maintaining their current market share in particularly slow times. The slowdown in hotel demand growth, coupled with the increase in new supply, suggests that it will take several years for this new supply to be absorbed.
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