HVS Market Report – Kansas Metropolis Flourishing Demand Mills Bolster Resort Curiosity

Homewood Suites by Hilton Kansas City Speedway - Exterior
  Homewood Suites by Hilton Kansas Metropolis Speedway

The Kansas Metropolis resort market has rebounded following the impacts of the COVID-19 pandemic, and excessive ranges of leisure demand and the return of conference exercise have pushed the restoration. Regardless of rising development prices, a lot of resort developments are proposed in Kansas Metropolis, signaling an optimistic outlook for the market.

The Kansas Metropolis resort market has rebounded following the impacts of the COVID-19 pandemic, and excessive ranges of leisure demand and the return of conference exercise have pushed the restoration. Regardless of rising development prices, a lot of resort developments are proposed in Kansas Metropolis, signaling an optimistic outlook for the market.

Occasions and Developments in Kansas Metropolis

A variety of main occasions and improvement initiatives throughout Kansas Metropolis ought to enhance resort demand and bolster pricing energy within the coming years, as outlined beneath.

  • In March 2019, development started on a $1.5-billion undertaking to transform the Kansas Metropolis Worldwide Airport to a single-terminal facility. The brand new 40-gate terminal opened in February 2023, together with an adjoining 6,200-space parking storage. The previous terminals might be demolished, leaving room for potential future growth of the brand new facility.
  • The NFL Draft happened in entrance of Union Station in April 2023. That is the primary time that Kansas Metropolis has hosted the occasion, and it was anticipated to attract lots of of hundreds of tourists, possible the most important occasion in Kansas Metropolis’s historical past.
  • In 2022, Meta Platforms Inc. started development on a one-million-square-foot information middle in northern Kansas Metropolis, which is able to value over $800 million and is anticipated to be operational in 2024.
  • Hunt Midwest acquired 3,300 acres of land northeast of the airport and plans to start development on the KCI 29 Logistics Park in 2023. The undertaking contains the development of 27 Class A industrial buildings, which is able to complete greater than 20 million sq. toes of producing and warehouse services.
  • On the western fringe of the KC metro space in De Soto, Kansas, Panasonic has damaged floor on a $4-billion electric-vehicle battery plant. The undertaking is anticipated to create 20,000 jobs and can start mass manufacturing of lithium-ion batteries in March 2025.
  • Kansas Metropolis might be one of many host cities for the 2026 FIFA World Cup; choose matches might be performed at GEHA Subject at Arrowhead Stadium. Metropolis officers are estimating that the occasion will generate roughly $700 million in constructive financial affect from customer spending, largely benefiting the hospitality, restaurant, and leisure industries.

Conference Heart Demand Outlook 

In an effort to draw massive conference teams to town, public officers sought the event of a brand new flagship resort for the Kansas Metropolis Conference Heart previous to the COVID-19 pandemic, and the 800-room Loews Kansas Metropolis was accomplished in 2020. Though the pandemic delayed the anticipated advantages of the brand new resort, corresponding to extra conventions and attendees, the variety of occasions and room nights generated by the conference middle rebounded quickly, reaching pre-pandemic ranges in 2022.
The outlook for exercise on the conference middle in 2023 is comparatively sturdy, because the variety of room nights on the books already exceeds these recorded for 2022. Moreover, a big variety of booked and tentative room nights are within the pipeline for 2024 and past.

Conference Exercise Forecast as of March 15, 2023

Convention Activity Forecast as of March 15, 2023

Supply: Go to KC 

Provide Progress

The Kansas Metropolis market skilled an inflow of resort provide over the previous decade, largely attributed to the revitalization of downtown and the persevering with improvement of Johnson County, Kansas. Moreover, builders had a robust incentive to construct given the comparatively low-cost debt and solely reasonable will increase in development prices previous to the COVID-19 pandemic.
Nonetheless, these market situations have modified since 2020. The pandemic dramatically slowed the resort development pipeline, and the following will increase in improvement and capital prices have restricted the variety of new resort initiatives. Regardless of these headwinds, Kansas Metropolis continues to draw improvement curiosity as a result of optimistic outlook for this market.
The next charts present the variety of motels and rooms which have opened within the Kansas Metropolis metro space since 2017.

Historic Provide Progress in Kansas Metropolis

Historical Supply Growth in Kansas City

Supply: STR

Moreover, the breakdown of recent resort initiatives we’re presently monitoring is illustrated beneath.

Resort Rooms in Improvement inside the Kansas Metropolis Metro Space as of Q2 2023

Hotel Rooms in Development within the Kansas City Metro Area as of Q2 2023

Supply: HVS 

Historic Efficiency and Outlook

Occupancy was negatively affected by the introduction of recent provide previous to the COVID-19 pandemic and continued to say no in 2020 because the pandemic affected the market. Since then, will increase in leisure journey, the return of main occasions, and a excessive quantity of development exercise have supported the restoration of resort demand ranges in Kansas Metropolis. As of year-end 2022, occupancy remained considerably beneath pre-pandemic ranges as new provide had not been absolutely absorbed by the market; nevertheless, the continuing return of many workers to places of work, a rise in group gatherings, and several other scheduled main occasions are anticipated to drive sufficient demand to outpace new provide and push occupancy again to a standard stage.
Common charges for this market are anticipated to proceed the sturdy development pattern that was realized in 2021 and 2022 by way of the primary half of 2023 given the variety of particular occasions slated for the market. Thereafter, the tempo of ADR development is anticipated to reasonable considerably, notably throughout 2024, which is anticipated to have a weaker conference calendar. Nonetheless, Kansas Metropolis will host a sequence of World Cup matches in 2026, which ought to positively have an effect on pricing energy that 12 months.


A powerful restoration of demand for the reason that COVID-19 pandemic, a number of massive developments, and a lot of scheduled occasions all contribute to an optimistic forecast of demand within the Kansas Metropolis market. Given these components, resort improvement curiosity in Kansas Metropolis is powerful, regardless of rising development prices.

For detailed forecasts or to inquire a few particular resort undertaking, contact Benjamin Giebler or Dan McCoy of the HVS St. Louis workplace.

About Daniel P. McCoy

Because the HVS Apply Chief for the Midwest, Dan McCoy, MAI, oversees the agency’s seven places of work on this area. A Senior Managing Director at HVS, Dan is a acknowledged thought-leader, collaborative advisor, and invaluable useful resource for the Midwest’s lodging trade. He combines a deep understanding of regional resort markets with sturdy analytical pondering to offer all kinds of shoppers with up-to-date hospitality intelligence and tailored options. Dan is a Designated Member of the Appraisal Institute (MAI) and a licensed common appraiser. Contact Dan at +1 (970) 215-0620 or dmccoy@hvs.com.

About Benjamin Giebler

Benjamin Giebler is a Mission Supervisor with the St. Louis HVS consulting and valuation apply. Benjamin obtained his Missouri Actual Property License in 2018 and Kansas Actual Property License in 2020 and labored as a business actual property agent in Kansas Metropolis. His expertise within the hospitality trade contains working as a valet and bell supervisor on the Marriott Downtown Kansas Metropolis, and he was a part of the opening group at Resort Kansas Metropolis as a entrance workplace and bell supervisor. He graduated from the College of Missouri-Kansas Metropolis with a Bachelor of Science in Enterprise Administration with an emphasis in Actual Property and Finance. Moreover, he earned a certificates in Hospitality Actual Property Investments and Asset Administration from Cornell College. Contact Benjamin at (816) 589-0922 or bgiebler@hvs.com.

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