HomeMy WebLinkAboutItem 05 - Hotels and Motels
MEMO TO: HONORABLE MAYOR, MEMBERS OF THE CITY COUNCIL AND
PLANNING AND ZONING COMMISSION
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: OCTOBER 25, 2021
SUBJECT: RECEIVE A REPORT, HOLD A DISCUSSION, AND PROVIDE
STAFF DIRECTION REGARDING CURRENT USE-SPECIFIC
LIMITATIONS FOR HOTEL AND MOTEL DEVELOPMENTS.
BACKGROUND: Since the outbreak of COVID-19 in early 2020, hotels have seen a
dramatic downturn in demand due to fear of infection, mandated
closures, and reduced business and convention travel. Hotel
Research by CBRE has shown that high-end and luxury hotel’s
occupancy numbers are well below their mid-scale and economy
counterparts beginning in April 2020 to date. While recovery to the
travel industry is occurring, drive-to leisure destinations outpace air
travel and long-haul leisure travel. Current CBRE Hotels Research
forecasts anticipate that revenue per available room to reach 99% of
pre-pandemic levels in 2024.
Even prior to the pandemic segmentation in hotel product was
expanding due to the generational changes taking place in business
travel and leisure travel. The hotel industry utilizes the concept of
“segmentation” to introduce different hotel brands meant to meet the
unique demands of changing demographics. Current offerings in
hotel branding and design lend themselves toward vibrant and
interactive common spaces, grab-and-go food service, 24-hour
fitness options, free wireless internet (wi-fi), contactless guest
experiences (e.g. check-in), blending of work and family travel (also
known as “Bleisure”), ride-sharing, social networking, and passive
outdoor recreation features including fire pits and patio seating that
are electronic device friendly.
These current trends in industry segmentation create challenges for
cities that have defined what quality hotel development is to them.
The City of Grapevine’s current hotel use-specific standards, limit the
number of minimum rooms, require minimum floor area per guest
room, require full-service restaurants with kitchens, require 24-hour
onsite amenities such as a pool and meeting or conference space.
These minimum standards are juxtaposed with current market trends
of smaller, more efficient facilities with less staff interaction and
removal of loss centers such as full-service restaurants. The hotel
industry is working to capture optimal hotel occupancy and maintain
profitability, therefore, key features that have been adopted into the
City’s Zoning Ordinance do not currently allow the flexibility needed
to respond to these changes in the market.
The Zoning Ordinance allows Hotels within four zoning districts, “CC”
Community Commercial District, “HC” Highway Commercial District,
“HCO” Hotel Corporate Office District, and “BP” Business Park
District with approval of a conditional use permit (CUP) and meet
minimum use-specific standards. These use-specific standards were
established in January 2005 to address concerns for the influx of
limited-service hotels and to protect the luxury and high-scale resort
and convention centers that had already developed within the city.
Current use-specific standards include:
a. Each guestroom shall have a minimum area of three hundred
eighty (380) square feet.
b. A full service restaurant with full kitchen facilities and which
provides service to the general public shall be required.
c. On-site staff is required 24-hours a day, seven days a week.
d. The following amenities shall be provided:
1. A minimum of 10,000 square feet of meeting or conference
room space; and
2. A swimming pool with a minimum are of 1,000 square feet.
e. A minimum room count of 300 rooms.
Staff is requesting to discuss and for direction for the following
options to the hotel use-specific standards:
a. Guestroom minimum area of 330 square feet.
b. The following amenities provided:
1. 5,000 square feet of meeting or conference room space;
and
2. A swimming pool or equivalent outdoor
congregation/flexible space.
c. Foodservice options including the offering of prepared and
packaged foods.
d. A minimum room count of 250 rooms in a single brand or through
dual brands on one lot. Consider allowing phasing of the two
hotels on one lot.
Additionally, staff is requesting feedback regarding additional
modifications to the Zoning Ordinance for hotels within a special
hotel district, such as allowing a minimum of 120 guest rooms on a
lot, reducing minimum room sizes to 330 square feet, and discussing
minimum amenity features for these limited-service options.