Arlington’s Leisure District neighborhood is deep rooted inside the sports activities and leisure industries. Six Flags Over Texas opened in 1961, adopted by Six Flags Hurricane Harbor (opened as Moist ‘n Wild) in 1983. Seven Seas Marine Life Park operated within the early 1970s on what’s now the location of the Sheraton lodge, with some unique buildings included into the lodge’s bodily plant. In 1994, the $191-million Globe Life Park in Arlington changed Arlington Stadium, which had served as the house for the MLB Texas Rangers from 1972 to 1993. The 2009 opening of the $1.3-billion AT&T Stadium, previously Cowboys Stadium and residential to NFL Dallas Cowboys, as soon as once more remodeled the Leisure District. Other than sporting occasions, the AT&T Stadium is a big producer of room nights for resorts by way of live shows and different particular occasions. Moreover, in 2010, the Worldwide Bowling Museum & Corridor of Fame opened in Arlington.
The latest catalyst within the space is the $250-million Texas Reside! sports activities/leisure complicated, which is underneath building on seven acres of land between AT&T Stadium and Globe Life Park in Arlington. The preliminary part (eating places, bars, retail institutions, and an out of doors live performance venue) of Texas Reside! opened in August 2018, and a 300-room Loews Resort will open in August 2019; the brand new, $1.1-billion stadium for the Texas Rangers is ready to open in 2020. Furthermore, in October 2019, Arlington unveiled a $10-million transformation of its conference middle to create a 100,000-square-foot “e-sports” venue inside the facility. The Esports Stadium Arlington features a 2,500-seat stadium with 90-foot LED stage show and theatrical lights and sound; a broadcast and manufacturing studio; a gaming foyer with totally furnished computer systems; eight workforce coaching rooms; a VIP participant lounge; and a modular breakout area for press, catering, and VIP lounges. West of the Leisure District, Downtown Arlington has additionally been a spotlight of redevelopment and revitalization.
Supporting the rising Leisure District panorama, the continuing $233-million Interstate 30/State Freeway 360 Interchange challenge will substitute current cloverleaf turnpike configurations with trendy direct join interchanges; State Freeway 360 in additionally present process a widening challenge.
Native Financial system
Whereas the leisure, retail, and tourism industries signify vital sources of income and employment for the world, manufacturing performs a chief function within the space’s financial system. Common Motors (GM) has an meeting plant in Arlington that has been in operation for over 50 years. Arlington Logistics Heart, a brand new automotive provider park constructed by GM, is situated on the previous website of the Six Flags Mall. In October 2018, Bell unveiled its expanded Flight Analysis Heart; this South Arlington facility homes most of the Fort Price-based latest expertise and improvements, together with the Bell V-280 Valor, 525 Relentless, V-247 Vigilant and the Autonomous Pod Transport (APT). The College of Texas at Arlington (UTA) additionally represents a big supply of employment within the space. UTA has a scholar inhabitants of roughly 42,000, providing greater than 180 diploma applications in an intensive vary of disciplines. UTA opened its $125-million, 220,000-square-foot Science, Engineering Innovation and Analysis constructing in September 2018.
Resort Panorama & Lodging Metrics
The North Arlington lodging market has lengthy been serviced by three main full-service resorts—the 311-unit Sheraton, the 308-unit Hilton, and the 200-room Crowne Plaza—complemented by a wide range of limited- and -select-service lodge choices. A Vacation Inn opened in 2008, and simply north of town limits, the previous unbiased Admiral Resort was transformed to a DoubleTree by Hilton in December 2016. The Metropolis of Arlington has instituted growth necessities for lodge building; for instance, full-service resorts will need to have a minimal of 200 rooms, 10,000 sq. ft of assembly area, a restaurant with a full-service kitchen, room service, and leisure services, amongst different necessities. Extra restrictions in place embrace the prohibition of limited-service lodge growth within the Leisure District Overlay District. New provide underneath building within the North Arlington lodging market consists of an Aloft, set to open in Might 2019, and the Loews Resort at Texas Reside!, scheduled to open in August 2019. Proposed initiatives additionally embrace a Drury Resort close to Lincoln Sq. (out of doors mall) and an AC Resort by Marriott at Momentum Park. Lastly, building of a brand new full-service lodge and conference middle has been rumored inside the market.
The South Arlington lodging market, as soon as dotted with largely limited-service resorts alongside Interstate 20 and across the Parks Mall at Arlington, has expanded in recent times, largely paced by retail expansions close to the Park Mall at Arlington and Arlington Highlands way of life buying middle, in addition to new warehouse/distribution facilities. The Arlington Municipal Airport, a “reliever” airport for company, cargo, and leisure pilots, can be situated on this neighborhood and is dwelling to Bell Helicopter. New resorts that opened in 2016 and 2017 embrace a Homewood Suites by Hilton and a Hilton Backyard Inn, respectively. New provide underneath building within the South Arlington lodging market features a Fairfield Inn by Marriott, set to open in June 2019, and a dual-brand SpringHill Suites by Marriott/TownePlace Suites by Marriott, anticipated to open in 2020. Proposed initiatives within the South Arlington lodging market additionally embrace manufacturers corresponding to Aloft, Tru by Hilton, and Home2 Suites by Hilton.
Usually, occupancy within the North Arlington lodge market has hovered within the low 70s for the final a number of years, with ranges estimated nearer to 70% in the latest yr, as new provide within the South Arlington market has drawn some demand away from resorts situated within the northern a part of town. Market contributors additionally report that the conversion of the conference middle into an “e-sports” venue has resulted in a discount of group room nights. ADR for higher-quality limited- and select-service resorts is estimated to common roughly $115, whereas the premier full-service resorts are attaining charges close to the $145 mark. Whereas new lodge merchandise are on the horizon, elevated leisure demand related to the opening of Texas Reside! ought to assist offset provide will increase; occupancy is anticipated to register within the excessive 60s within the close to time period.
Inside the South Arlington market, occupancy efficiency is much like North Arlington, estimated close to 70% for the market as an entire. Increased-quality limited- and select-service resorts on this market are attaining estimated ADRs within the $120 vary, reflecting these resorts’ newer services when in comparison with the North Arlington provide. Occupancy on this market ought to proceed to develop modestly, supported by the premier lodge merchandise and types coming into the market, together with the dual-brand SpringHill Suites by Marriott/TownePlace Suites by Marriott, which is able to embrace ample assembly/occasion area and an expanded, upscale leisure space.
The town’s extremely standard mixture of tourism points of interest ought to proceed to drive robust visitation throughout the summer season months, whereas established establishments will provide constant financial advantages to town. The town’s Leisure District and Downtown neighborhood are each being reimagined with new growth and revitalization efforts, triggering an elevated lodge mattress base.
HVS continues to repeatedly seek the advice of on this metropolis, with the Dallas workplace serving the Dallas/Fort Price Metroplex and higher North Texas markets. Kathleen Donahue, a Senior Vice President within the Dallas workplace, is able to help you on any consulting want you could have. Drew Noecker with HVS Brokerage may also talk about any Dallas/Fort Price Metroplex asset you could be contemplating promoting in 2019.