The Traction Hotel - a Kimpton Hotel
A Sense of Place...your place...
PDG is excited to be developing this 151 room boutique hotel. The property will also help provide additional needed restaurant options, with a rooftop gastropub, an oyster and charcuterie bar, and a "traditional" 3-meal option all being a part of the hotel.
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The thumbnail items presented below help explain "Why" we believe in the Project like we do, but Cincinnati continues to provide its own best support. With its continued quality of life and housing affordability metrics, the City continues to trend higher with younger, well educated white collar and skilled labor. This has fueled the continued growth of the Fortune 500 & 1000 employers and increased demand for hotel rooms and restaurant seats throughout the CBD.
Other empirical and superlative 'facts' are shown below, but please do not hesitate to reach out, as we will be happy to discuss further. Afterall, we love to talk shop!
PDG Wishes to Acknowledge & Thank the Following Entities for Their Efforts...
Evaluation of Feasibility and Critical Data Points
NOTE: For purposes of this Section, the Historic Tax Credits will NOT be addressed as their importance is assumed to be understood.​
1
ADR & RevPar Growth
From the beginning, there has been an ADR disconnect between comparable product types in Cincinnati vs other similarly sized towns.
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This has become especially apparent the last 12-18 months, i.e. after Covid and the Lytle Autograph re-opened and reached stabilization. By comparison, the HVS Study projected Traction to open at $282/nt (in 2023 dollars), while ADRs at the Lytle Park and 21c approached averages of $450 and $375, respectively.
In following this data, it is now apparent that the modeled ADR is highly likely to be materially low in Traction's performance model.
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(See the next column and its notes on the undersupply of Upper-Upscale Rooms.)
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2
Lack of Supply & Barriers to Entry
While continuing to refresh the ADR surveys being conducted in Item No. 1, PDG also noticed material increases in ADRs at virtually all of the Hilton and Marriott flagged offerings. Locations with room counts in excess of 350, while also being in desperate need of FF&E updates are still realizing avg ADRs of $300+/nt.
This is the clearest sign yet of Lack of Supply/Inventory, but given the size of the locations and the realities of costs in todays market, it will exceptionally difficult for new product to be placed into service within the next 5-10 years.
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One irrefutable data point is the fact that there are approx. 250 rooms in the ENTIRE Cincinnati market considered to be upper-upscale or boutique. When examining that same qualifier, hut limiting the underlying property's age to a decade or less, the number drops to 101. FOR THE ENTRE MARKET!
3
Right Time...Right Place
Finally, there is also lack of supply in non-chain F&B offerings in the CBD and immediately surrounding areas. Considering this fact in light of Kimpton's F&B expertise and the Traction building's ability to amenitize such via a Rooftop gastropub and unique basement area. Simply put, it was being at the proverbial "right place at the right time".
The Building & It's Physical Layout
Kimpton - Model Room
PDG and Parkes Construction completed a "mocked up" Model Room in 2019 (just prior to Covid...) in order to use in connection with final "sign-off" for both The National Park Service/Ohio State Historic Preservation Office and Kimpton. Its example pictures are below, but all required and necessary sign-offs were received.
Location, Location, Location...
Where would You Like to Go?
Traction Is Right in the Middle of It All...
is the property TOO Convenient?
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Fountain Square - 2 Blocks
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Paycor Stadium - 3 Blocks
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Great American Ballpark - 3 Blocks
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Hard Rock Casino - 7 Blocks
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5th 3rd Plaza - Across the Street
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Over-the-Rhine District - 4 Blocks
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Findlay Market - 10 Blocks
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Duke Energy Convention Center - 5 Blocks
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Arts District - 4 Blocks
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University of Cincinnati - 10 Blocks
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Interstate Access - 2 Blocks​
The City of Cincinnati
"Shhh...!!!" That's the sound of a local Cincinnatian asking us not to tell too many people.
However, "Fun" is a hard thing to hold back! Plus, the story is simply too powerful. From Quality of Life, to Affordable Housing, to Dinning and the Arts, the market is under-served from a Room Inventory perspective.
