By Heidi Nielsen
In November of 2024, we celebrated the grand opening of the
Residence Inn by Marriott Eagle Boise. The Boise metro area has seen a large
influx of people relocating to the area over the past several years, and Forbes
named Boise one of the fastest-growing cities in the United States in 2024. As the area grows, we look forward to expanding
further into the market.
Boise, nicknamed "The City of Trees," is the capital and
most populated city in Idaho. Boise has grown in popularity given its low cost
of living, urban downtown, lively arts scene, and numerous outdoor activities. Outdoor
activities, such as skiing, fishing, hiking, and biking are a draw for locals
and tourists alike. The city also hosts several annual events that bring in
visitors, such as the Spirit of Boise Balloon Classic and the Treefort Music
Fest. Furthermore, the Jaialdi Basque Festival will return in 2025. This
festival typically takes place every five years but has not been held since
2015 due to COVID in 2020. In 2015, the festival had a $4.3 million economic
impact on the state.
Tech is the leading growth sector for the area; in fact,
Boise's tech market is growing faster than the national average. Major tech
companies in Boise include Meta, DJI, Oppo, and Micron. Micron is Idaho's
largest for-profit employer, with 5,400 employees in the Boise area. In
September 2022, Micron broke ground on the site of its $15 billion
government-subsidized fab (semiconductor-fabrication factory); complete
construction is expected to be completed in late 2025, with production slated
to start in 2026. The fab is estimated to create 2,000 jobs at the company
itself, plus 15,000 indirect jobs related to services and support the facility
will require. Additionally, Meta is investing roughly $800 million into its new
data center in nearby Kuna.
Year-to-Date Trends: The Boise market ended the year relatively flat, with a slight increase in ADR and a small decline in occupancy, leading to a -0.4% decline in RevPAR. Despite the stability in the market, CoStar is forecasting steady growth in the next five years, which is assumed to be supported by the overall growth in the area.
Source: CoStar
New Supply: According to CoStar, three properties (400
keys) are under construction in Boise, accounting for 4.2% of its existing
inventory. This includes two extended-stay hotels and a select-service hotel. In
addition to the Residence Inn by Marriott Eagle Boise, two other hotels opened
in the market in 2024, the Hotel Renegade and Everhome Suites Nampa Boise.
Transactions: Given the challenging capital market
environment and conditions in the debt markets, sales continue to lag behind
historical data. In the past 12 months, three hotels have transacted, all
within the extended-stay segment.
Given all the growth in the area, particularly within the tech
sector, we have an optimistic outlook on Boise. Extended stay has made up the
majority of new room nights over the last year and will continue to be the
biggest influx in rooms in 2025. In addition to residential growth, the
hospitals and universities in the area are expanding their facilities, which supports
the extended-stay sector. We look forward to ramping up the Residence Inn by
Marriott Eagle Boise this year.
