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March 4, 2024

Labor, Insurance Costs Rising, But U.S. Hotels Continue Comeback

Cost increases plagued the nation's biggest hotel chains in 2023, with expenses like labor and insurance eating into margins. But a steady stream of leisure travelers and higher room rates helped the companies maintain profitability.

On their fourth-quarter earnings calls, hospitality executives were mostly optimistic about this year as well. Revenge travel might be fading, but supply constraints mean elevated room rates aren't coming down anytime soon, a fact that has helped the industry cope with the seemingly strong but still uncertain economic climate.

Labor, Insurance Costs Rising, But U.S. Hotels Continue Comeback

“It was a solid year,” Morningstar Credit Senior Vice President David Putro told Bisnow. “Outside of properties that have specific issues, generally there seems to be solid net cash flow growth. And even anecdotally, I've traveled a bit already this year, and hotel prices are not going backwards at the…

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Weekend Interview: DC Blox CEO Jeff Uphues On AI And the Next Data Center Boomtowns

This series goes deep with some of the most compelling figures in commercial real estate: the deal-makers, the game-changers, the city-shapers and the larger-than-life personalities who keep CRE interesting.

As a boy in the town of Jefferson, Iowa, the first job Jeff Uphues ever had was with a local electrician, digging trenches for power lines.

In a sense, digging trenches for cabling is what Uphues has been doing ever since across a 35-year career in communications infrastructure that, since 2017, has seen him at the helm of Atlanta-based data center developer DC Blox.

Since its founding eight years ago, DC Blox has focused primarily on building colocation data centers in small markets across the Southeast in places like Birmingham and Huntsville in Alabama and Chattanooga, Tennessee. The firm also has a significant footprint in the optical fiber business, building and operating networks to send data from smaller Southern markets into Atlanta, as well as developing its own subsea cable landing station in Myrtle Beach, South Carolina. 

With record leasing demand spurring an acceleration of the data center development pipeline in the coming years, the industry is expanding beyond its traditional hubs and attracting new investors. Uphues and DC Blox stand to benefit from that expansion, and the firm is making its first push into a larger market by building a pair of campuses near Atlanta. 

Uphues spoke to Bisnow about the flood of new data center development in small markets, how artificial intelligence is redrawing the data center map and what CRE professionals dipping their toes into data centers need to know before taking the plunge.

This interview has been edited for length and clarity.

Weekend Interview: DC Blox CEO Jeff Uphues On AI And the Next Data Center Boomtowns

Bisnow: DC Blox has a distinct model within the colocation data center space. You build and operate facilities almost exclusively in small markets in the Southeast, but a significant part of your business is focused on building out optical fiber network infrastructure. How do these two pieces fit together? Uphues: We…

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This Week's Atlanta Deal Sheet: AJC Moving Headquarters Back To The City

Atlanta's largest daily newspaper is moving back to the city.

This Week's Atlanta Deal Sheet: AJC Moving Headquarters Back To The City

The Atlanta Journal-Constitution is moving back inside the Perimeter after more than a decade in the suburbs. The newspaper inked a 21K SF lease at Promenade Central in Midtown for its newsroom and studio, the paper reported.The AJC's move is seen as helping it achieve 500,000 paid digital subscribers by…

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