Updated over 8 years ago on . Most recent reply
The Hunt For The Next Portland: Hoteliers Bet Big On Small Cities
I just read this article and thought it was very interesting. It makes a lot of sense that these boutique hotel companies would look to smaller cities that are being revitalized as they can acquire property for a fraction of the cost. There is also going to be less competition.
I thought this part of the article was especially interesting. I think the internet has really changed things and made people become interested in cities they might not have considered visiting or even moving to before.
Many of the downtown areas of these cities have the historic buildings and walkable neighborhoods that more people are finding desirable today. Many have vacant buildings that can be repurposed into something new and beautiful.
It definitely seems like the cities mentioned in the article such as Pittsburgh and Cincinnati and Cleveland have good upside potential.
Of course it's important to know the city well as all real estate is local.
What city or neighborhood of a city do you see as the "Next Portland" or up and coming area?
I think these types of neighborhoods are interesting because there is the possibility for good cashflow while there is also opportunity for future appreciation from gentrification. I don't think that general statements like , "The Midwest /rust belt don't appreciate"" aren't always true . I've seen property go up a lot in some of these areas from looking at prices online. Over the Rhine in Cincinnati is one example.
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Wali says his properties see a lot of “anti-establishment” foodie millennials who seek under-the-radar areas that haven’t been displayed on their Instagram feed. They want to be first.
“The mind-set is: I want to discover something you don’t know so that I can have the social currency of bragging about it and telling you that I was an early adopter,” says Wali. That mentality lends itself to a different kind of destination promotion, one in which hoteliers advocate the uniqueness of their area’s experiences.
“Instead of fighting our way into Manhattan or South Beach or Hollywood, why not go into these markets where the product will stand out by its design and thoughtfulness?” Wali says."
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I would definitely agree that Cleveland is on this list. I mean, I moved here - and I'm the huge-glasses, flannel-shirt, craft-beer millennial. I picked Cleveland over returning to NYC or going out to the pacific northwest, and I'm very happy with my choice. There's plenty of awesome stuff going on and more opening up every day.
When I moved to Cleveland after being kicked out of Scotland, my NYC friends said "It's like you're the protagonist of an indie movie." :)