Kansas City Hotels: Investment Risks & Performance by Product Type

Kansas City, USA — August 8, 2023

In short: Country Club Plaza hotel market analysis reveals varying performance across economic cycles for full-service, select-, limited-service, and extended-stay properties.

Hotel Market Performance in Kansas City

The News

According to Hospitality Trends, the Kansas City metro hotel market exhibits distinct revenue patterns across hotel product types during economic cycles. Full-service hotels show the most volatility, with revenue peaking during high-growth periods and declining sharply in downturns. Select-service hotels demonstrate more stability, maintaining steady occupancy and revenue during both expansions and contractions. Extended-stay properties, while less affected by cyclical fluctuations, show consistent but lower revenue growth compared to full-service hotels.

Industry Context

This performance profile aligns with the select-service hotel category, which typically offers more flexible pricing and amenities to attract a broader range of travelers. Full-service hotels, with their higher service levels and room rates, are more susceptible to economic downturns as discretionary spending decreases. Extended-stay accommodations, catering to longer stays and business travelers, exhibit steadier demand but limited revenue spikes.

Key Details

• Full-service hotels in Kansas City experienced a 15% revenue decline during the 2008 recession, recovering to pre-recession levels by 2012.
• Select-service hotels maintained an average occupancy rate of 78% throughout the 2008 recession, with revenue growing 8% annually over the past five years.
• Extended-stay hotels saw a 5% revenue increase in 2022, driven by a rise in business travel and longer-duration stays.

What Travel Professionals Should Know

For TMCs managing Kansas City corporate accounts, the data suggests a need for diversified hotel portfolios. While full-service properties may offer premium revenue potential, select-service options provide more stable bookings during downturns. Airport lounge operators should consider partnerships with extended-stay providers to offer integrated travel solutions, capitalizing on the consistent demand for longer-term accommodations.

Frequently Asked Questions

What is the hotel performance analysis in Kansas City?
The analysis reveals that full-service hotels are most volatile, select-service hotels are more stable, and extended-stay hotels show consistent but lower growth.

Which travel trade segments does this affect?
This analysis primarily impacts full-service hoteliers, select-service hotel operators, and extended-stay property managers in the Kansas City market.

When does this take effect?
The performance patterns observed are based on historical data up to 2022 and are not tied to a specific future date.

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