Hospitality Investment in Columbus
Columbus hospitality has bounced back stronger than most Midwest markets. Intel's $20B chip fab commitment changed everything — business travel bookings jumped 35% year-over-year as semiconductor companies scout locations. Limited-service hotels near the airport and Polaris are trading at 6.5-7.5% caps. Full-service downtown properties still lag but fundamentals are tightening. OSU football weekends drive ADR spikes that make the annual numbers look better than they are. Don't get fooled by October revenue when you're underwriting.
Market Context
Cap Rate Range
6.5%-8.5% depending on location and service level. Limited-service suburban properties trade tighter, full-service downtown still wide.
Current Vacancy
12-15% average occupancy loss during weekdays outside conference season. Weekend occupancy runs 75-85% market-wide.
Rent Trend
ADR up 18% from pre-COVID levels. Intel announcement drove corporate rate negotiations 12-15% higher for 2025-2027 periods.
Absorption
New supply limited to 3-4 projects annually. Demand growth from semiconductor ecosystem outpacing new keys delivered.
Price Per Unit Trend
$85K-$125K per key for quality limited-service. Full-service downtown $150K-$200K per key depending on brand and condition.
Transaction Volume
$180M in hotel sales 2025, up 60% from prior year. Intel-adjacent properties driving most activity.
Submarket Analysis
Airport/Southwest
6.5-7.0% capVacancy
68% average occupancy
Avg Rent (1BR)
$140 ADR limited-service
Strong corporate demand from logistics and semiconductor suppliers. Three new Hampton Inns planned within 5 miles of Intel site.
OM Tip
Include weekday vs weekend occupancy split. Corporate travel dominates Mon-Thu.
Downtown/Arena District
7.5-8.5% capVacancy
72% average occupancy
Avg Rent (1BR)
$185 ADR full-service
Event-driven demand improving. Blue Jackets and Clippers drive midweek bookings. Business travel recovery slower than suburban.
OM Tip
Show event calendar impact on RevPAR. Convention center adjacency adds 15-20% premium during trade shows.
OSU/University Area
7.0-7.5% capVacancy
75% average occupancy
Avg Rent (1BR)
$160 ADR
Football weekends skew annual numbers. Medical center expansions driving steady weekday demand year-round.
OM Tip
Break out football weekend performance separately. Game day ADR hits $350-400 but only 7 dates annually.
Polaris/North
6.8-7.3% capVacancy
71% average occupancy
Avg Rent (1BR)
$145 ADR
Corporate headquarters cluster drives consistent demand. Less volatile than other submarkets.
OM Tip
Highlight corporate account penetration. Nationwide, Wendy's, and other HQs provide rate stability.
East Side/New Albany
6.5-7.0% capVacancy
69% average occupancy
Avg Rent (1BR)
$152 ADR
Intel effect strongest here. Land values tripled, new construction challenging. Existing properties benefit from supply constraints.
OM Tip
Document Intel contractor bookings. Show pickup in extended-stay demand for construction workers.
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What Your OM Needs to Address
STR competitive set analysis
Columbus has distinct demand patterns by submarket. Don't use generic Ohio comps.
Data to Include
Trailing 24 months STR data by month, occupancy vs ADR trade-offs, market penetration index for each comp property
PIP requirements and timeline
Hilton and Marriott both tightened brand standards post-COVID. Budget 8-12% of purchase price for improvements.
Data to Include
Current brand inspection reports, upcoming PIP deadlines, estimated completion costs with contractor quotes
Labor cost pressures
Housekeeping wages up 30% since 2022. Maintenance staff hard to find with Intel construction boom.
Data to Include
Current wage rates vs market, turnover statistics, any union considerations or pending negotiations
Seasonal demand patterns
OSU football, summer leisure travel, corporate budget cycles all impact revenue. Show buyers the real monthly flow.
Data to Include
Monthly RevPAR for 24 months, conference and event calendar overlays, explanation of demand drivers by month
Intel ecosystem impact
Semiconductor supply chain companies scouting locations daily. Corporate housing demand spiking.
Data to Include
Current corporate accounts, extended-stay bookings as percentage of total, rate premiums for weekly stays
Capital improvement reserves
FF&E replacement cycles shortened by heavy business use. Set realistic reserves or buyers will adjust pricing.
Data to Include
FF&E replacement schedule, actual reserve contributions vs recommended, recent capital expenditure history
Investment Outlook
Short Term
Strong fundamentals through 2027 as Intel ramp continues. Corporate travel 20% above pre-COVID levels locally. Limited new supply keeps pricing power intact. Watch for overheating in eastern submarkets where land costs spiked.
Medium Term
Supply response likely 2027-2029 as developers get financing for new builds. Market should absorb additional keys given semiconductor ecosystem growth. Business travel patterns permanently changed — less downtown, more suburban extended-stay demand.
Long Term
Columbus positioned well among secondary markets. Population growth, corporate relocations, and manufacturing resurgence create stable demand base. Climate advantages over Sun Belt becoming factor in site selection decisions.
Buyer Profile
Regional hotel operators and REITs dominate. 1031 exchange buyers from coastal markets finding value. Family offices buying single assets in Intel corridor. Avoid sellers expecting 2021 pricing — market rational but not frothy.
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