Northwest Arkansas forgot something when it invited all these guests — they need a place to stay .
💸 Why it matters: When there aren't enough hotel rooms to accommodate people coming in for events, people stay farther away and spend money elsewhere instead of NWA, University of Arkansas economist Mervin Jebaraj told Axios.
- Experience Fayetteville, the city's tourism bureau, regularly sees people looking to host large conventions or events struggle to find enough hotel rooms. Some events have not come here as a result, spokesperson Sarah King told Axios.
🧳 What they're saying: The region has invested a lot in tourism over the past several years, but the hotel industry has been late to catch up, Jebaraj said.
📈 State of play: At least seven new boutique hotels are in the works or newly opened, including four in Fayetteville and three in Bentonville. Experts say the uptick is overdue.
- Some of the developing hotels were delayed by the pandemic, King said, also pointing out that some hotels have closed in the past several years.
🛏 By the numbers: Benton and Washington counties have roughly 6,800 standard hotel rooms combined, about 300 more than they did ten years ago. While it's difficult to nail down an exact number of hotel rooms a given area needs, that's not enough of a jump to accommodate the increase in visitors and residents, Jebaraj said.
- The two counties also have about 2,500 suites, up from about 2,100 ten years ago. What constitutes a suite versus a standard room is defined by the hotels.
- And short-term rentals like Airbnbs are another way the market has responded to the higher demand across the region, per Jebaraj.
🎓 Context: One of the largest drivers for hotel demand in Fayetteville specifically is the University of Arkansas, as families visit students and attend events like games, King said.
More hotels, more experiences are key
The Motto by Hilton in downtown Bentonville is up and running. Photo: Alex Golden/Axios
Savvy hotel accommodation isn't as simple as having enough beds for travelers. It also caters to what different guests want.
🏨 Between the lines: The number of hotel rooms includes everything from bare-bones motels to spots like 21c Museum Hotel, which has a fine dining restaurant and art museum.
- Much of NWA's hotel inventory is on the older side, and the region needs a variety of amenities and experiences in its hotels, Jebaraj said.
- The accommodations for visitors also serve residents because they typically add needed event and meeting space, plus restaurants, King said.
😎 Zoom in: Moxy Hotel in Fayetteville is going for a youthful, fun vibe, Rob Apple, chief marketing officer at Specialized Real Estate Group, told Axios. It's fitting for a college town and especially fitting for the South Yard development where it's being built within walking distance to restaurants, trails and hopefully retail eventually. Apple expects Moxy to open in fall 2025.
- The 131-room hotel will have a bar with snacks. In the spirit of keeping it light, guests will check in at the bar.
- That's a different feel than the 78-room Stonebreaker Hotel alongside a renovated Victorian house that Specialized is also behind. The entire project involves renovating the old Pratt Place Inn and Barn property and reopening it with a high-end restaurant, private social club and event space. Stonebreaker Hotel will open in January, according to its website.
A rendering shows the lobby and lounge area inside the Moxy Hotel. Photo courtesy of Specialized Real Estate Group
🚧 State of play: 21c Museum Hotel isn't the only major hotel in downtown Bentonville anymore. The Motto by Hilton opened in late August, and Steuart and Tom Walton's company, Blue Crane, is building a 142-room hotel with a restaurant at the corner of Southeast A Street and Central Avenue. Blue Crane declined to give an opening date for the under-construction hotel.
🚲 What they're saying: Customers are looking for customization and unique experiences, Daniel Lock of Hospitality America told Axios. Hospitality America is affiliated with the Motto in downtown Bentonville.
- The 175-room hotel caters to Bentonville's cycling culture with bike valet and storage, and developers worked with OZ Art NWA to curate the art inside the hotel. It's complete with a sushi restaurant, a coffee shop serving NWA's own Onyx coffee and a tropical bar. Not exactly plain Jane.
🧢 Zoom out: Walmart is planning an AC Hotel by Marriott on its new campus in Bentonville open to the public.
🏗 What's next: Downtown Fayetteville is about to double the number of hotels right off Dickson Street, which currently stands at two, with the 234-room Graduate by Hilton and the 49-room Inn at Carnall Hall. (OK, there's also the 10-room Dickson Street Inn.)
Go deeper: Junto sushi opens inside Motto
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