Impact of COVID-19

Fort Worth-Arlington hotels suffered Texas' fourth biggest drop in revenue during pandemic

Fort Worth hotel revenue is down 70 percent.

Omni Hotel & Resorts

Fort Worth and Arlington hotels have suffered drastically during the pandemic, together adding up to the fourth biggest drop in revenue among Texas' major metro areas.

A report released September 15 by Texas hotel consulting firm Source Strategies Inc. shows hotel revenue in the Fort Worth-Arlington area plunged 70 percent in the second quarter of this year versus the second quarter of last year. The occupancy rate sank to 31.1 percent, down from 65.9 percent in the second quarter of last year. Many hotels were shut down entirely during that time.

Neighboring Dallas fared only slightly worse. There, hotel revenue there dropped 72.9 percent, with an occupancy rate of 32 percent. In the second quarter of last year, the occupancy rate was 72 percent.

Statewide, hotel revenue plunged a record 64.1 percent, while the occupancy rate slid to 35.8 percent.

To put that data into perspective, Source Strategies says the second-quarter losses added up to more than the total losses racked up during the Great Recession.

“This is an economic disaster on a scale that we have not seen before, and we have been covering the Texas lodging industry for more than 30 years,” Todd Walker, president of Source Strategies president, says in a release. “Hotels are under extreme financial pressure at this point, and many will not be able to survive if this low level of demand continues into next year.”

Texas’ other major metro areas didn’t escape the damage caused by the coronavirus pandemic. Second-quarter hotel revenue dropped:

79.7 in the Austin area. Occupancy rates are now 32.8 percent, down from 76.8 percent in the second quarter of last year. It's the biggest drop in revenue ever recorded for the city— and the biggest anywhere in Texas.
74.1 percent in the San Antonio market, with an occupancy rate of 31.6 percent. In the second quarter of last year, the occupancy rate was 67.6 percent.
61.4 percent in the Houston market, with an occupancy rate of 37 percent. In the second quarter of last year, the occupancy rate was 65 percent.

Texas markets that turned in the best financial performance in the second quarter were Corpus Christi and Brownsville-Harlingen, where hotel revenue declined less than 20 percent, the report says.

Revenue per available room (RevPAR) is a key indicator of financial success for hotels.

The state’s top RevPAR performers were mostly along the Gulf Coast in places like Galveston, Port Aransas, and South Padre Island. Galveston’s San Luis Hotel took the state’s No. 1 RevPAR spot in the second quarter, at $148.06. That compares with $223.94 in the second quarter of 2019 when it the No. 17 spot statewide.

Here are examples of how jumbled the second-quarter RevPAR numbers for the state’s major metro areas were:

In Arlington, the Residence Inn racked up RevPAR of $99.34 in the second quarter, down from $122.25 during the same period last year. That pushed the property up from 248th on the second-quarter RevPAR list last year to 10th this year.
In the Dallas market, the Residence Inn Dallas West topped the list for RevPAR, at $60.58, good enough for 142nd place statewide. In the second quarter of 2019, its RevPAR was $98.16, landing it in 550th place.
At No. 61, the Doubletree Hotel Austin ranked first in the Austin market for RevPAR, at $74.98. Its statewide RevPAR ranking in the second quarter of last year was 316th. Low-cost hotels dominated the rest of Austin’s second-quarter RevPAR leaders.
In Houston, second-quarter RevPAR for the Post Oak Hotel at Uptown tumbled from $203.83 to $90.17, shifting it from the No. 27 position last year to the No. 23 position this year.

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Hotel News

Chic hotel with fire station and famed chef to open in Fort Worth

Courtesy

The Nobleman Hotel a Tapestry Collection by Hilton

A hotel centered around a historic Fort Worth building is coming to the Near Southside neighborhood: Called The Nobleman Hotel, it's a Tapestry Collection by Hilton concept, opening at 503 Bryan Ave. in the Magnolia Avenue-area of Fort Worth.

According to a release, it'll open in early 2025.

The development is anchored by the No. 5 Fire Station, a landmark building from 1911 that was home to many noble Fort Worth firefighters, thus the name of the hotel.

Developed by Jeff Blackman of Bedford Lodging, the property wraps a collection of 153 guest rooms and suites — including 121 guest rooms and 32 extended stay suites with kitchenettes — around the original 1911 building.

The release notes that each brick is a remembrance of the firefighters who protected Fort Worth, including halting the great South Side fire from reducing the city to ashes.

The Nobleman Hotel Tapestry The Nobleman Hotel, Tapestry Collection by HiltonCourtesy

The restored fire station serves as the heart of the hotel, housing guest check-in, communal areas, game spaces, and a new chef-driven restaurant called Duchess.

Amenities include a pool, fitness center, 1,500 square feet of meeting and outdoor event space.

“The Nobleman will be a stylish and approachable addition to the Near Southside neighborhood,” says Blackman in a statement. “We want to be a destination for the weekend traveler, for those visiting our renowned medical district, for business purposes, and definitely for our local residents — we want it to become the go-to neighborhood spot.”

Spacious communal areas, rooms, and restaurant are designed by Kathy Moran Clarson, founder and owner of KMC&A Design, a design firm that specializes in the interior design of hotels and resorts.

The hotel's entry in the 1911 building is enhanced by a revitalized staircase that includes the actual fireman’s pole. A lobby features restored white tiled walls, brass accents, and concrete floors. Outdoor spaces are outfitted with fireplaces and green landscaping as well as activity spaces.

The Nobleman Hotel Tapestry Original fire stationCourtesy

Dining
The in-house restaurant Duchess will be located in the fire station building at street level — setting the tone of the property with an energetic and lively atmosphere.

The cuisine will be New American with a Texas influence, with a menu conceived by a name known nationally as well as in Dallas-Fort Worth: Casey Thompson, who worked at The Mansion on Turtle Creek before rocketing to fame when she appeared as a contestant on Top Chef. In 2010, she helped launch Brownstone, a restaurant in Fort Worth's West 7th district where she served as a consulting chef for a year.

Thompson is concepting the menu at Duchess and will help recruit an executive chef, still to be named. Dishes named so far include Texas burrata, snapper crudo, brined roasted hen, red snapper, and a center-cut filet.

"Duchess will create a unique destination within the neighborhood, welcoming both hotel guests and locals alike," says Blackman. "Our property is designed to offer a heightened hospitality and a delicious culinary experience that will stand out in the city’s competitive market."

The team working on the project includes the Dallas-based agency Ashlar Projects, creating the hotel branding, and Kansas-based Crossland Construction, providing construction services.

With public spaces fostering community engagement, Duchess, and guest rooms providing a comfortable respite, the hotel is set to become a preferred destination for leisure and business travelers, as well as medical district visitors and employees.

Bedford Lodging was founded in 2013 by owner and president Jeff Blackman, who has more than 25 years of hospitality expertise in all aspects of the hotel business and is affiliated with the development of more than 150 properties. Bedford Lodging has developed 10 hotels and acquired four since inception, many in Colorado including The Hoffman Hotel in Basalt, SpringHill Suites in Lakewood, Residence Inn and Courtyard by Marriott in Lakewood, and the AC Hotel in Frisco (Colorado not Texas), as well as The Waters Hotel in Hot Springs, Arkansas.

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