With PGA Coming And Rapid Corporate Growth, Frisco Hotel Development Leans Upscale
A hotel boom is quietly surfacing in Frisco, Texas.
The once sleepy suburb continues to welcome new, increasingly higher-end, hotels to complement a steady stream of sports, corporate and entertainment developments.
Frisco has 21 hotels, another four under construction, and five announced for the future, Visit Frisco said.
Many of the existing hotels in Frisco were built between 1999 and 2015 and are mostly garden-variety concepts, but that is quickly changing.
"The quality of the hotels has moved up," CoStar Director of Market Analytics Paul Hendershot said. "If (you're) just looking at the stuff say built in 2015, a lot of it was a Hampton Inn type of product."
The hotels opening this year and under construction come with a decidedly more upmarket vibe compared to established products.
Data from STR shows the average daily rate for Frisco hotels hovered at $127.31 in 2014 and has grown consistently to $146.24 in June 2019 — a 15% jump in five years.
A series of speakers and experts will be focusing on hospitality development in Frisco and beyond at Bisnow's DFW Hospitality Boom! event on Sept. 5 in Arlington, Texas.
This past year, the AC Hotel Dallas Frisco by Marriott opened up along with the boutique Hotel Indigo concept.
"It’s more of a destination hotel [pipeline], it’s no longer just a typical business hotel [market]," Hendershot said.
The emergence of a luxury Hyatt or more specialty flags is not unusual considering Frisco is the future site of the PGA of America and Keurig Dr Pepper headquarters, and the existing home of The Star in Frisco campus, Dallas Cowboys World Headquarters, Dr Pepper Ballpark and Comerica Center.
It is presumed the PGA will create a crescendo effect that spurs additional hotel development.
"Typically when a new business moves into a new area, you have a multiplier effect across all industries, but when you have something specifically like the PGA, you will see more activity in the hotels and restaurants," Hendershot said.
The PGA is part of a much larger master-planned community that includes the eventual creation of an Omni brand luxury hotel.
"The entire Fields project spans more than 2,500 acres, with just about 600 acres of that dedicated to the PGA of America's new headquarters, two golf courses and an Omni resort hotel," Visit Frisco Executive Director Marla Roe said. "The rest of the project will be developed into office, retail, entertainment and residential space. While nothing has been confirmed, we anticipate that due to the demand, additional hotel developments could be included in that space as well.”
For Hendershot, Frisco hotel development is another example of how North Dallas suburbs have created self-sustaining entertainment ecosystems.
“I would say Frisco, Allen and those northern suburbs have truly emerged as their own entertainment districts, where before they were completely dependent on the activity in Downtown Dallas," Hendershot said.
"So, they are now operating as their own nodes, and they’ve evolved into their own entertainment districts over the last few years.”