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The case for a speedy hospitality recovery in Dallas’ northern suburbs

By March 3, 2021Press Releases

Posted March 3, 2021

North Dallas hotels poised for strong recovery

Several signs point to a recovery for hotels in the northern suburbs of Dallas that will likely be stronger and faster than elsewhere in the Dallas Fort Worth region and other major U.S. markets. Factors include the following:

The Rise of the “Bleisure” Segment

When it comes to business travel, many industry prognosticators expect that “bleisure” (business/leisure) destinations will be among the first to recover. When businesspeople get back to travelling, they will want their money’s worth after the workday. While there’s no beachfront in Plano, warm weather and attractive leisure demand generators put Dallas’ northern suburbs on the forefront of the “bleisure” movement. With points of interest such as Plano’s Legacy developments, the Star in Frisco, Southlake Town Square, Great Wolf Lodge in Grapevine, and great golf across the region, Dallas’ suburbs are far from typical sleepy suburbs with sterile office campuses sprinkled throughout; rather, they are truly world-class business and leisure destinations.

Improving Corporate Outlook

From Plano to Southlake, Dallas’ northern suburbs have emerged as corporate hotbeds in recent years. Myriad Fortune 500 companies and countless Class-A office parks call these communities home and have proven to be steady demand generators for area hotels. While the COVID-19 pandemic largely halted corporate business activities, Dallas leads the country in employees headed back to the office, per Kastle Systems’ Back to Work Barometer. While this does not directly correlate to corporate travel or hotel demand at this point, it is certainly a positive indicator.

Texas Leads the Way to Recovery

In light of increased vaccinations and lowering case counts, Texas recently announced that it would be lifting all COVID-19-related restrictions. Essentially, the state is opening back up completely, while highlighting personal responsibility in continuing to limit the spread of the virus. For hotels, this means that gatherings of all sizes will be allowed going forward, paving the way for increased leisure, corporate, and group business to come fully return. More than anything, this move is yet another a clear sign that the state is a business-friendly haven.

Increased Prominence of Area Airports

Airline and hotel performance typically go hand in hand. Airlines nationwide have trimmed their operations and expect to remain so well into the future. This means many routes could be dissolved and more flights could be directed through major hubs. DFW Airport, located northwest of Dallas and a short drive from many suburbs, is the headquarters airport for American Airlines and a major hub for several others. Unsurprisingly, for at least part of 2020, DFW Airport became the busiest airport in the world. The same concept also applies to Dallas Love Field, situated just north of Downtown Dallas, and the headquarters airport for Southwest Airlines. This gives submarkets across the DFW Metroplex a major advantage when it comes to facilitating corporate and leisure travel, as well as attracting conventions and group events whose attendees value easy air access.

Declining Threat from New Supply

Pre-pandemic, new supply was, without a doubt, the greatest threat to hotel performance in Dallas’ northern suburbs. While a few projects are still under construction or moving towards development, most developers hit the brakes on their projects in 2020. This means one less obstacle for existing hotels to overcome as the recovery rolls on.

Residential Boom

Much has been made of the in-migration of residents to Texas and the DFW Metroplex in the wake of the pandemic. Many of these incoming residents are attracted by the relatively low cost of living and ample real estate that can be found in communities like Richardson, Addison, Allen, McKinney, and others. Population growth, while not a perfect corollary, is certainly a positive contributor to hotel demand in these areas.


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