International Hotel Owner Reports Significant US Revenue Growth

A business leader based in Portland, Oregon, Barclay Grayson is an executive member of the BPM Real Estate Group. Barclay Grayson presently guides developments such as the Portland area’s first Ritz-Carlton hotel at Block 216. Maintaining a close watch on the hospitality industry, he has an interest in how it is bouncing back from the pandemic.

One of the bellwether companies whose revenue trends reflect the broader market is IHG, which oversees Holiday Inn, Regent, Crowne Plaza, and Hualuxe locations worldwide. As reported in Reuters in late 2021, IHG has witnessed particularly robust growth in US corporate bookings, as well as in general business and international travel. The performance indicator RevPAR (hotel room revenue) rose by two-thirds in the third quarter, which brought it to levels only 7 percent off those achieved in 2019.

This positive showing followed a strong summer, when high domestic leisure travel demand pushed rate and occupancy to levels last seen in 2019. Behind this uptrend was a combination of easing restrictions, higher vaccination rates, and pent-up demand for travel. Overall, IHG’s Americas region generated 76 percent more revenue than the previous quarter, which was still 10 percent below 2019.

While this revenue rebound has helped the bottom line, IHG is still looking toward a target of $25 million in cost savings and has exited or planned exits in nearly 100 Crowne Plaza and Holiday Inn hotels.

Block 216 Brings New Luxury Hotel and Condo Options to Portland

Barclay Grayson is a longstanding presence in the Portland, Oregon, entrepreneurial community who guides the BPM Real Estate Group as senior vice president, development and acquisitions. One major high-rise development Barclay Grayson is presently focused on is the luxury tower Block 216 in downtown Portland.

Announced just prior to the pandemic in 2019, the new $600 million tower will be located at Southwest Alder Street and Southwest 10th Avenue. One high-profile brand that will be housed within the 35-story tower is Ritz-Carlton, which represents the first location of the storied hotel in the Pacific Northwest. The Marriott International-operated property will also give the city its first five-star luxury hotel and offer business and leisure travelers a range of amenities that are not currently available.

Other tenants of the buildings will include those inhabiting corporate offices and the owners of high-end condominiums. CBRE’s West Division hotel valuation team has forecast a successful Block 216 launch, as there is still more than a year until the project’s scheduled completion. By the time of opening, the market is likely to have recovered and the demand for business travel should be high.

Ritz-Carlton Luxury Hotel Project Moves Forward in Portland

A resident of Portland, Oregon, Barclay Grayson guides BPM Real Estate Group and oversees a range of real estate endeavors across the western United States. Barclay Grayson has been integrally involved in developing the upcoming Block 216 tower in Portland as the head of acquisition and development.

Block 216’s plans feature a Ritz-Carlton hotel, making it the brand’s first location in Portland. The Ritz-Carlton will occupy 11 floors of the $600 million high-rise, which is under construction on the corner of Southwest 10th Avenue and Southwest Alder Street. In addition to Marriott International-owned Ritz-Carlton guest rooms, the complex will contain high-end condos and offices with extensive downtown views.

Despite market softness due to the COVID-19 pandemic, luxury hotel executives are standing firmly behind the project and feel confident in the long-term viability of Portland as a premier travel destination. BPM Real Estate Group originally announced the endeavor in 2019, prior to the pandemic. Development progress is on track to achieve an expected opening in March 2023.

West-division leadership at CBRE’s hotel valuation practice also expressed optimism and noted that having a few years until completion is an asset because the market will have time to recover substantially. In addition, there is a market niche to fill because there is currently no five-star property in Portland.

Meet the Money – Conference Focuses on Hotel Financing and Investment

Based in Portland, Oregon, Barclay Grayson is the senior vice president of BPM Real Estate Group, where he oversees a wide range of acquisitions, divestitures, and ground-up developments in markets ranging from multifamily to commercial properties. Actively involved in the professional community in Portland and beyond, Barclay Grayson has attended the Meet the Money conference, which focuses on the hotel investment and finance markets.

Coordinated by hotel attorneys at JMBM’s Global Hospitality Group, the well-attended event annually brings together hotel investors, owners, operators, and developers, as well as lending parties. Topics covered span the entire breadth of equity and debt capital when it comes to selling, purchasing, and developing hotel properties.

Presentations at the 2019 event in Los Angeles were delivered by a member of the Lodging Industry Investment Council, as well as by representatives of financial entities, such as Citigroup and CleanFund.

One presentation featuring the insights of operators, such as Hyatt Hotels Corporation and Interstate Hotels & Resorts, was titled, “Select Service Still Everyone’s Favorite? Where Does it Go from Here?” Another presentation during the three-day conference featured a team of lawyers and addressed “Legal Hotspots: The Essentials Every Hotelier Should Know.”

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