Study expects new Jefferson City hotel to have 70% occupancy through 2033
Ryan Shiner
JEFFERSON CITY, Mo. (KMIZ)
A market study regarding the new conference center was presented to the Jefferson City Council on Monday during a special work session.
Renderings of the new conference center hotel were shown during a presentation. The hotel is expected to be open by June 1, 2028, according to presentation documents.
It will be located at the city block between East Capitol Avenue, Monroe Street, Commercial Way and Madison Street. Crews have been clearing out the area for the past couple of years, with the Madison Street Parking Garage being the most-recent demolition. The council last month approved the creation of a downtown conference center transportation development district.
The market study by CBRE Valuation & Advisory Services shows the 203-hotel room should expect roughly 70% occupancy (of 74,0925 expected rooms) through its first five years. The net income over that period is expected to be around $5.5 million, the study shows.
Rooms will range in sizes between 320 square feet through 600 square feet and the building will have a 15,000-square-foot ballroom that could hold 1,000 people.
“The CVB has indicated more than 50 groups have held their meetings in Jefferson City in the past but have been pushed out due to lack of quality facilities,” the study says.
The study claims there is a market need to host 1,000-person events annually or biannually that need at least 400 hotel rooms. There are currently 560 rooms available at Jefferson City hotels, the study claims.
“In conjunction with this market study, a parking study is being performed to create a shared parking model which will determine the optimal size of the new parking structure based on existing parking demand, increased demand due to the conference center & hotel, as well as increased demand due to induced downtown redevelopment,” the study says.
Financing is coming from hotel and incentive revenue bonds, lodging Tax revenue bonds, parking revenue bonds, non-ARPA grants, parking fund contributions, state appropriations, lodging tax contributions, MDFB tax credits and project fund interest earnings totaling $121.7 million.