Dayton’s hotel market heats up, more rooms coming to downtown

Fairfield Inn & Suites by Marriott in downtown Dayton. The hotel opened in 2018. TY GREENLEES / STAFF
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Fairfield Inn & Suites by Marriott in downtown Dayton. The hotel opened in 2018. TY GREENLEES / STAFF

More people are staying in hotel rooms in Dayton, a positive sign for a market that is expected to expand in coming years.

Dayton has seen a 20 percent increase in hotel and motel tax revenue in the first half of 2019, which suggests guests have rented nearly 16,400 more rooms than they did during the same period last year, according to city data.

Downtown Dayton welcomed last year its first newly built hotel in more than four decades. And more projects are in the pipeline, including plans for a boutique-style hotel that is part of Hilton’s Tapestry Collection.

“We’ve had growth in stock, and this would also suggest lower vacancy rates,” said Chris Wimsatt, an analyst with Dayton’s office of procurement, management and budget.

MORE: Downtown Dayton could get Hilton Tapestry boutique hotel

Dayton has collected $381,500 in hotel and motel taxes through the end of June, which is up $64,000 from the first half of last year, according to city data.

Collections indicate that consumer spending on hotels in Dayton is up $2.13 million so far this year, the city said.

The average daily rate of U.S. hotel rooms is slightly more than $130. At that rate, the city estimates that consumers bought nearly 16,400 more rooms this year than last year, or more than 90 additional rooms per day.

Compared to three years ago, Dayton has seen 195 more rooms rented per day, Wimsatt said, and lodgings tax revenue is almost 57 percent higher.

Hotels in Dayton and Montgomery County continue to see positive growth, which is good news for the region’s attractions, businesses and economy, said Jacquelyn Powell, president and CEO of the Dayton Convention & Visitors Bureau.

RELATED: Downtown Dayton building sold to hotel developer

“The month of June saw an increase in hotel business for positive reasons, including the Vectren Dayton Air Show and the efforts of the Dayton Convention & Visitors Bureau hosting several large groups,” she said.

However, unfortunately there also has been an increase in stays because of the displacement of residents due to the Memorial Day tornadoes, as well as people staying overnight to assist with the recovery efforts, including contractors and volunteers, she said.

The increase in hotel stays also likely is connected to more destination spots, like the Steam Plant and Grande Hall at Liberty Tower, which are popular venues for special events and wedding receptions, said Sandy Gudorf, president of the Downtown Dayton Partnership.

Members of wedding parties and special events often rent hotel rooms, she said, even if they are not coming from out of town.

Dayton’s core has seen job growth as some major employers have moved there, and they often have clients or other out-of-town visitors, Gudorf said.

Until last year, a new hotel had not been constructed in downtown Dayton since 1976, when the Stouffer’s Dayton Plaza Hotel was built at 33 E. Fifth St. It later became the Crowne Plaza Dayton.

SEE: Downtown Dayton’s first new hotel in decades opens, and here’s what you should know about it

But in October, a new, 98-room Fairfield Inn & Suites opened at the corner of Monument Avenue and Patterson Boulevard in downtown Dayton.

The hotel is the newest amenity to come to the rapidly growing Water Street District, which has apartments, restaurants, offices and other businesses.

The developers of the project said the new Fairfield Inn offers a type of product not found anywhere else downtown.

They also said the location makes it unique and appealing. The six-story hotel sits across from RiverScape MetroPark and Fifth Third Field, and is a short walk from the performing arts centers along North Main Street.

MORE: Planned Dayton boutique hotel, loft apartments seek state tax credits

“The new hotel has seen very brisk activity,” Gudorf said.

Some developers are exploring creating new, smaller boutique hotels in downtown Dayton, Gudorf said.

One project under development is to transform the Barclay building at 137 N. Main St. into a new branded boutique hotel.

First Barclay LLC purchased the building last year. The company is a joint partnership between Columbus-based Lawyers Development Corp. and Chicago-based First Hospitality Group.

Last month, the Dayton Daily News first reported that building permits indicate the new owners plan to make the hotel part of the Tapestry Collection by Hilton.

The project is still in development, but the Tapestry Collection property in Dayton is expected to open in 2021, according to a public relations representative.

Tapestry Collection hotels offer “guests unique style, vibrant personality and an authentic connection to their local neighborhood,” the company said.

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