It Is A Harder Question To Answer Than You May Think

hotel sign

 

The short answer is maybe. Which is far better than a straight “no” that we received previously. But hurdles exist and the right solution needs to be found.

We spoke with Motel 6, Days Inn, LaQuinta, and Wyndham at the convention. The larger hotels had a consistent message based off of the conversations we had with the representatives; Roof tops do not fill their beds.

To maintain a successful level of occupancy they need a higher level of economic growth. For San Tan Valley, that doesn’t exist yet. If the Banner hospital complex grew and/or the medical complex on the southeast of the Banner Hospital on the east side of Gantzel also grew substantially, that could provided enough to justify a mid-range hotel to begin to look at the San Tan Valley area.

But, right now, without more head of household jobs, the area does not qualify for such a hotel. The current situation of San Tan Valley means a hotel would be reliant upon family and friends coming to the area to fill their beds. 

Smaller hotels such as Motel6 have a stronger focus on roof tops to fill their occupancy than larger brands. Even hotels such as La Quinta rely upon economic traffic statistics to judge an areas success rate.

Additionally, anything above a smaller hotel also rely on specific economic reports, such as a STAR Benchmarketing report to acquire the necessary capital from banks. The STAR program is used by the global hotel industry as a vital revenue management tool. The report benchmarks a hotel’s performance against its competitive aggregate and local market. 

With the closest hotel in the area located in Mesa, competitive analysis is non-existent. Larger hotels simple do not have the data or economic area support to justify investing into San Tan Valley based on repeated discussions across several hotel chain corporations, including La Quinta, Wyndham, Hilton, and Hyatt.

But, with the focus on small hotels, such as Motel 6, Budget Host, Econo Lodge, and Super 8 Motels, that have a stronger focus on roof tops, San Tan Valley becomes a more viable location. The smaller hotels allows us to focus on our population, which now becomes a selling point. Without any competition within the immediate area, plus the potential for future growths with nearly 10,000 more roof tops and future economic development in the planning stages, smaller hotel companies could see a location in San Tan Valley as an opportunity.

Follow-up discussions will be taking place in the coming weeks to further the relationships needed to get the answers required which will allow those involved to move forward with the opportunity to bring a hotel to San Tan Valley. 

It is an exciting time for this area as this is the first time local representatives and county officials are working together and focusing on San Tan Valley’s needs that have been neglected for far too long.

We look forward to providing the community with an update on future conversations that have had with hotel representatives.

 

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