This relocation by CBRE Hotels from Houston to Dallas is a prime example of what is occurring on a much broader and larger context. The age old "struggle", if you will, between Houston and Dallas for supremacy has been decided ... Dallas already has and is pulling away from Houston in ever greater ways with each passing day.
The Dallas region is now 4th largest GDP in the nation (Houston falls from 4th to 6th), Dallas region has 22 Fortune 500's (Houston falls from 26 to 20), Dallas is literally number one in the nation in just about every major financial and economic metric (with Houston in many instances literally falling off the map).
Houston's role is number two in Texas and consequently the entire South, still quite important of course, but now must accept it has an ever more apparent supporting role to Dallas as the number one throughout the South and number 4 nationally.
The positions and roles of the two respective cities and regions have flipped. About the only major category that Houston now tops Dallas on is in its greater city population ...CBRE Hotels Says, 'Adios, Houston' And 'Hola, Dallas'
CBRE Hotels South-Central To Pack Its Bags And Head North
by Jeremiah Jensen, Dallas BisNow, January 31, 2018
CBRE is moving its hospitality consulting and advisory services for the South-Central U.S. region from Houston to Dallas. “Dallas is the quintessential location for focusing our services throughout the South-Central U.S. In addition to DFW’s centralized location, transportation hub and growing tourism, Dallas is home to many hotel franchises, representatives, management companies, developers and investors, as well as an essential financial market for our industry.
This restructuring will enable us to expand our advisory services to ultimately better serve a broader range of our hotel clients,” CBRE Hotels Director, Consulting, Jeff Binford said in a statement.
The reason Dallas is the quintessential location is simple. Dallas is the busiest, biggest hotel market in Texas.
According to Marcus & Millichap research, Texas has the largest construction pipeline in the nation and out of all the Texas markets, Dallas has the largest pipeline of hotel rooms by far
The data from the second half of 2017 puts Dallas at roughly 8,000 rooms in the pipeline
and second place Houston has about 6,000 rooms in its pipeline
. The report indicates this may hurt occupancy for a while, but it also says demand remains strong as occupancy in Texas trends in the mid 70% range, well above the national average of around 65%.
CBRE Hotels will work out of 2100 McKinney Ave., a 352K SF, Class-A property in Uptown.