Technical Assistance Panel

Hotel Policy Study

ASHEVILLE, NC

Objective and responsible advice on land-use,

planning, development, and redevelopment.

January 30, 2020

 About ULI
• Established in 1936.
• Independent nonprofit education and research
organization.
• The mission of the Urban Land Institute is to provide
leadership in the responsible use of land and in
creating and sustaining thriving communities
worldwide.
• 45,000 members worldwide.
• Representing the entire spectrum of land use and
real estate development disciplines.

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 The Panel

Keith MacVean (Chair) Jessica Rossi

Moore & Van Allen Kimley-Horn

Randy Goddard Charlie Johnson

Design Resource Group Johnson Consulting

Amy Barrett
ULI South Carolina

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 Community Recognition

- Asheville named one of the Top 50 Best Places to

Travel in 2020 – Travel + Leisure, 2020

- Asheville named the “Prettiest Town” in North Carolina

– The Daily Meal, 2019
- Asheville ranked 4 of the Top Best Places to Retire in
the US – U.S. News and World Report, 2019

- Asheville ranked as one of the Top 15 “Best Places for

Business and Careers” – Forbes.com, 2019

- Asheville named on of the Top 50 Small Cities to Start

a Business – WalletHub.com, 2019

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 The Panel’s Assignment

The ULI panel was asked to address the following questions:

• What is the appropriate balance of hotels relative to other

uses in Downtown Asheville and in the city overall?

• Should the City consider special requirements for hotel

development in certain areas and if so, where and what might
those requirements be?

• How can the city work with hoteliers, tourism-related partners,

the hospitality industry and other stakeholders to reduce
negative impacts and better integrate hotels into the
community?

• How can Asheville leverage hotel development to meet city

goals, such as affordable housing, public infrastructure and
facilities, a thriving local economy, and a well-planned and
equitable community ?

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 Our Process

Earlier this Month:

• The panel studied and discussed information provided in the
briefing book.
• Panel briefed by sponsor.
• Sponsor and panel toured the area.
• Meet with key stakeholders and held a public session, to hear
a variety of perspectives, issues and concerns.
• The panel debated the issues and framed recommendations.
• Presents recommendations on January 30, 2020.

March 2020
• Provide written report of recommendations and findings.

The panel thanks our sponsor:

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 What We Heard
During our research phase of this assignment, we heard
comments including:

“Hotels are a proxy for a lot of other…

concerns”
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 Themes

• Asheville’s “hotel problem” is discrete/narrow,

manageable and can certainly be addressed during this
thoughtful, 12-month development moratorium.

– Pause button was appropriate.

– Policy & regulatory tools can enable the community to

manage hotels.

– City leadership is passionate, residents are highly

engaged and staff is talented & sophisticated.

• Opportunity/need for tourism management plan.

Managing tourism is a dynamic process, requiring periodic

modification and adaptation as circumstances change. If
you are successful, you are never done!

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• No “golden” standard

• Unique to each community; primarily driven by local economy

• Community visioning and prioritization

• Real estate market factors

Share of Land Uses by Type, City of Asheville, 2020

2.8%

Residential

20.7% Retail

Office

46.5%
Civic

5.6% Hotel

Industrial
1.6%

Vacant
15.0%
Other
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1.7% 6.2%
Source: Buncombe County
What is the appropriate balance of hotels
relative to other uses in Downtown
Asheville and in the city overall?
Share of Land Uses by Type, Downtown Asheville, 2020

3.9% 3.7%
Residential

15.3%
Retail
23.4%
Office

Civic

Hotel
17.2%
3.9%
Industrial

5.6%
Vacant

Source: Buncombe County

Other

27.0%

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 What is the appropriate balance of hotels
relative to other uses in Downtown
Asheville and in the city overall?
New Room Deliveries and Occupancy Rate, Buncombe Cty., 2016-2019
• Market
700 100%
performance for
600
hotels in 90%

New Hotel Rooms

Occupancy Rate
500
Buncombe County 400 73.7% 72.5% 72.7% 73.6% 80%
remain strong 300 70%
showing no signs 200
60%
of saturation 100
0 50%
2016 2017 2018 2019
• Occupancy has New Hotel Rooms Occupancy Rate
increased despite
new room Comparison of Occupancy Rate by Area, Buncombe Cty., 2016-2019

deliveries Occupancy Rate 100.0%

88.2%
90.0%
78.1% 78.2%
• Areas of 80.0%
69.9% 68.9%
70.0% 61.6%
Buncombe County 60.0%
with most activity 50.0%
Downtown Biltmore South & Tunnel Far East West
have highest Village Biltmore Road
occupancy Square
Source: STR Global
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 What is the appropriate balance of hotels
relative to other uses in Downtown
Asheville and in the city overall?
Comparison of Occupancy Rates in Peer Markets, November 2019 Comparison of Avg Daily Rates in Peer Markets, November 2019

80.0% $200
70.0% $180

Average Daily Rate

$160
Occupancy Rate

60.0%
$140
50.0% $120
40.0% $100
30.0% $80
$60
20.0%
$40
10.0% $20
0.0% $0

Source: STR Global

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What is the appropriate balance of hotels
relative to other uses in Downtown
Asheville and in the city overall?

• Leverage and regularly

update community
visioning documents

• Highlight community
assets
• Understand challenges
• Create policies and use
incentives to attract uses
that the community
desires

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 Recommendations

Our recommendations fall into three segments:

Strategic
Community
Investment

Policy and
Collaboration
Design

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 Policy and Design

• Create predictability and transparency in the approval

process
• Enact a Community Benefits Agreement (CBA) between
City and hotel developer as part of approval process
• Evaluate current design guidelines and develop new
criteria where necessary, and new oversight and
compliance mechanisms (example of 20 sq. ft. of event
space/room)

• Consider establishing an accommodations overlay zone

(you can limit number of rooms and establish additional
criteria)
• Reconsider historic district designation for downtown
• Strengthen enforcement of Airbnb rules/independent
operators
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 What makes a good hotel?

Community-Driven Hotel Development

Design Guidelines –
Charleston, SC Example

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 What makes a bad hotel?

Community-Driven Hotel Development

Design Guidelines –
What you Get Without Them

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 Charleston’s Accommodations
Overlay Zone
• Established 1987 (left) and 2013 (right)

• Hotels restricted to this area

• Specific development standards within the zone; those
have evolved over time

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 Traffic & Transportation

• Within the approval process, reduce the trigger to

require a Traffic Impact Analysis (TIA) based on # of
hotel rooms
• Do not penalize first/second floor supplemental uses
• Require lease of any city right-of-way needed during
hotel construction (which generates revenue for City)

• Help fund transit such as circulator bus between key

attractions

• Valet parking regulations and standards

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 Strategic Community Investment

• Tourism is a way to get what the community wants

• Work with the TDA and the state legislature to

renegotiate the marketing split from the hotel occupancy
tax.
• Utilize existing BID framework

• Continue to explore a food and beverage tax

• Invest in cultural and community assets for both
residents and tourists

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 Collaboration

• Consider a Livability and Tourism Department (or a

standing committee that meets regularly)

• Tap into the pride and compassion of Asheville. Your

businesses welcome all kinds of people. That spirit
should be the community’s as well.
• Strengthen partnerships and build trust.

• Equip all stakeholders with facts

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 The Panel’s Assignment

The ULI panel was asked to address the following questions:

• What is the appropriate balance of hotels relative to other uses

in Downtown Asheville and in the city overall?

• Should the City consider special requirements for hotel

development in certain areas and if so, where and what might
those requirements be?

• How can the city work with hoteliers, tourism-related partners,

the hospitality industry and other stakeholders to reduce
negative impacts and better integrate hotels into the
community?

• How can Asheville leverage hotel development to meet city

goals, such as affordable housing, public infrastructure and
facilities, a thriving local economy, and a well-planned and
equitable community ?

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 Next Steps

Panel Report: ULI will provide recommendations to the

City of Asheville in a final report by March. This is the first
step in the city’s review.
More information is available on the city’s project page at
https://www.ashevillenc.gov/hotelmoratorium

Questions?

We appreciate your participation and input!

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