The Dallas Office Market: Where Do We Go from Here?

Article Written By: richardsoto001

Dallas-area hotels have been experiencing difficult times. In response to the struggling commercial real estate market, many hotels have seen a decrease in demand and occupancy, thereby driving down room rates and overall revenue. PKF Hospitality Research, Smith Travel Research and Moodyandrsquo;s Economy.com recently released a report entitled andldquo;Hotel Horizons,andrdquo; which detailed the performance of the hotel industry over the last year.

Demand for hotel rooms in the Dallas area was down nearly 11 percent during the first six months of 2009, and occupancy was down 12.4 percent. In addition, the room rate for Dallas-area hotels was down nearly eight percent for that same period.

The report goes on to forecast a 7.5 percent total drop in demand for 2009, and an 8.7 percent decline in room rates for the same period. The occupancy rate for Dallas-area hotels for 2009 is expected to be around 53 percent, which is 11 percent lower than 2008.

This somber forecast for the hotel industry has left many analysts scratching their heads, as this kind of decline in demand has not been seen since the 1980s.

Looking Ahead to Better Times

Even with the grim news on the hotel real estate front, the newest addition to Dallasandrsquo; hotel market recently opened to much excitement. The beautiful new Aloft Hotel, which is situated across from the future Dallas Convention Center, is out to defy the odds with its reasonable rates and prime location. The developers of the Aloft Hotel are also betting that once the $350 million downtown convention center opens in 2012, business will be even stronger.

The Aloft Hotel, which once served as a railroad freight depot nearly 84 years ago, now shines brightly again as a beacon in the downtown Dallas area. The hotel boasts 193 rooms and had a construction cost of $35 million, which the developers of Dallasandrsquo; newest hotel feel is quite a bargain, considering the business that this hotel is expected to generate in the upcoming years.

The reasonably priced rooms, which start out as low as $89 per night, are thought to gain attention and attract business, and thatandrsquo;s what developer Ted Hamilton is counting on.

From the historic design of the building, to the beautiful interiors and impressive amenities, the Aloft Hotel is out to defy the current odds associated with a struggling hotel industry in Dallas. Some of the amenities found at the Aloft Hotel include a bar, a fitness center, 10,000 square feet of meeting space and a swimming pool.

Developers of the Aloft Hotel expect it to attract conventioneers, which should make up about 40 percent of its business.

If first impressions are any indication, then the Aloft Hotel has a bright future. In fact, during its first weekend, it was nearly booked full.

There has to come a time when the commercial real estate market, including the hotel industry, is ready to turn around and start rebuilding. And perhaps the Aloft Hotel is the catalyst that the Dallas area needs!

About the Author

Whether you are a buyer or seller, stay ahead of the market trend by reading VIP Realty’s informative analysis, which spans from Dallas commercial real estate to Coppell real estate .

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