Hartford Hotels Face Challenges as Convention Demand Surpasses Baseline Business Travel

Written by:

Rudi Davis

Date:

13 Feb 2026

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Hartford lost roughly 700 hotel rooms during the COVID-19 pandemic. Rebuilding that inventory now presents challenges beyond standard real estate calculations. According to David Steuber, Executive Director of the Capital Region Development Authority (CRDA), the main issue is the growing gap between the high demand from major conventions and the lower baseline demand from routine business travelers.

This tension is not unique to Hartford. Cities that rely on convention centers are finding that the economic model that once supported large blocks of downtown hotel rooms no longer works as it did before the pandemic.

Demand Mismatch Undermines Traditional Hotel Financing

Convention centers require a significant number of nearby hotel rooms to attract and serve large events. But hotels depend on steady year-round occupancy—primarily from business travelers—to remain profitable when conventions are not in session. When baseline business travel drops, the financial case for building or maintaining large hotels weakens, even if peak demand during conventions remains.

Steuber points out that, “You really need to have a higher baseline to build the capacity that you need to accommodate peak demand times.” Practically, hotels must fill enough rooms on regular days to cover operating costs, not only during occasional peak periods.

Lenders typically underwrite hotel projects based on average annual occupancy and revenue. In convention-dependent markets, occupancy can swing from 85 percent during conventions to as low as 40 percent in off-peak periods. These fluctuations make it difficult to meet debt service requirements, especially as lenders have become more cautious since the pandemic.

Pandemic-Era Shifts Expose the Problem

The shift to remote work has reduced the baseline of business travel in many markets. At the same time, organizations are still adjusting their approach to in-person events, creating uncertainty around convention attendance. Steuber notes that although the Connecticut Convention Center continues to “bring in large groups of folks from out of state,” securing enough downtown hotel rooms for these events has become more difficult. Visitors expect a walkable experience, but with fewer hotels and lower baseline occupancy, meeting that expectation is increasingly difficult.

Why the Problem Extends Beyond Hartford

Hartford’s situation reflects a broader challenge in cities that invested heavily in convention center infrastructure over the past few decades. Many of these cities built hotel supply strategies around patterns of business and convention travel that may not return to pre-pandemic levels.

Steuber describes the CRDA’s ongoing efforts as an “interesting discussion” without a clear solution. Cities anchored by convention centers may need to reconsider their hotel development strategies, potentially accepting fewer rooms than in the past or pursuing new financing models that better address volatile demand.

For investors, this means traditional hotel feasibility studies—focused on historic occupancy and convention schedules—are no longer sufficient. Development decisions now require a closer look at how business and group travel have changed in each market. The old assumption that conventions alone can support large new hotels no longer holds if baseline business travel remains permanently reduced.

CRDA’s Response and Its Limits

The CRDA has taken steps to address Hartford’s room shortage. Steuber notes that the authority recently issued a loan to help renovate a small downtown hotel and add a few rooms. The agency has also participated in other hotel development projects and continues to seek additional opportunities. However, Steuber acknowledges that these incremental additions may not address the underlying issue.

If baseline demand remains lower while peak convention demand persists, the market faces a structural mismatch. Traditional incentives and financing may not be enough to bridge the gap between what convention centers need and what hotel developers and lenders can justify.

Looking Ahead: Rethinking Hotel Development for Convention Cities

Whether cities with convention centers will adapt to this new reality or continue pursuing hotel development based on outdated assumptions remains uncertain. The ability to maintain vibrant convention activity may depend on finding new ways to finance and size hotel projects to match today’s demand patterns.

For now, Hartford’s experience serves as a warning: the economics of hotel development have changed, and markets that fail to recognize and address the new baseline may struggle to support their convention centers in the years ahead.