Niagara Hotels: Development and Diversification
Niagara Falls is one of the world's top destinations, but the sector supporting those visitors has really expanded in recent years. Over the past decade, new investments - in the Shaw Festival and in Niagara's many fine food experiences and wineries - have created new niche markets for the popular region.
These markets are powered by visitors looking for unique experiences, and smaller, higher-end boutique hotels have emerged to serve this discerning clientele. Investors are seizing these opportunities throughout the region.
These boutique hotels tend to be small properties with emphasis placed on architecture and design; these hotels are often housed within historical properties. Another element that sets these hotels apart is the smaller property size allows staff to have greater contact with guests to service their needs for special meals, spa services, or cultural tours.
These travellers have added new dimensions to the Niagara tourism market, and developments such as casino gaming have made the travel and hospitality sector a year-round catalyst for substantial development in the area. Today's Niagara region has 223 hotels and motels, with more than 17,000 rooms and a yield rate significantly higher than the North American average. Major chains such as Hilton, Sheraton, Westin and Crown Plaza all have developments proposed or underway, and the market continues to expand, offering solid investment opportunities through the entire spectrum of properties.
“Our research shows that sixty percent of the demand in Niagara Falls is in the limited-service market, with the majority of visitors arriving by car," says A. Douglas Birrell, CEO of Niagara Hospitality Hotels Inc. The company owns two Days Inn hotels and is seeking approval to build an 800-room extension on one of its properties. They are also reviewing proposals to rebrand their Oakes Hotel under the flag of a national chain.
The trend in boutique hotels has also taken hold in the countryside of Niagara, where travellers do not have to sacrifice luxury in more pastoral settings. Niagara-On-the Lake is home to three boutique establishments. The Harbour House Hotel, with 31 guest rooms, offers luxury and amenities such as king-sized beds with 300 thread count linens and rooms with fireplaces and whirlpool tubs. The Charles Inn, located in a refurbished historical manor house, has a large second-floor veranda with views of the gardens, golf course and Lake Ontario, and guests from the Inn’s 12 rooms, can treat themselves to afternoon tea or a multi-course meal prepared by chef William Brunyansky.
Another boutique property, the Shaw Club Hotel, is located across from the Shaw Festival Theatre, and its 30 guest rooms have the feel of a private club. The hotel offers unique amenities such as a pillow library, Ipod stations and upon request, a pet fish in your room. In Thorold, the Keefer House Mansion Inn, built in 1886, is a local landmark because of its connection to the development of the Welland Canal. Its spa, 11 guest rooms appointed with elegant antiques and oil paintings, and 50-seat dining room – offering the best in local cuisine courtesy of executive chef Bruce Worden – are the star attractions.
There remain more opportunities for these niche investments, as boutique hotels and inns are serving an ever-growing market of luxury seekers intent on experiencing all the sights, sounds and tastes Niagara has to offer.
For more information on tourism investment opportunities throughout Ontario, please visit: www.investinontario.com/tourism/regionalinvest.asp.