Airport hotels taking off in the U.S. – but not fast enough
As air travel booms, hotel stock near travel hubs struggles to keep up with demand. Even as developers and hotel operators rush a new breed of airport lodging to market, they remain well behind the crush of travellers, according to new research from property consultant JLL.
According to a recent article by JLL’s Jessica Marin, as air travel continues to boom, the hotel industry is working on overtime to bring its capacity in line.
“Only 15 out of the country’s 35 busiest airports feature an on-premises hotel, with another five or so major airports having one in the development stages. This leaves nearly half of the country’s major airports without an on-campus hotel which can be used to elevate an airport’s profile with travellers and earn revenues such as ground rent revenue,” she says.
On average there are 24 hotel rooms in airport submarkets for every 100,000 airline passengers, according to JLL’s research. Several prominent airports fall under that. These markets potentially represent opportunities for hotel development. John F. Kennedy International Airport only recently revealed preliminary plans to renovate the former TWA terminal into a hotel. It currently sits at only nine rooms for every 100,000 passengers.