HVS Releases 2013-2014 Hotel Development Cost Survey: 2013 Development Costs Rise; Market-by-Market Development Uneven
Monday January 20th, 2014 - 11:46AM W
| | | | | | | | | | |
These are shortcuts to your favorite social networking and bookmark sites. Add this story to your Facebook page, del.icio.us, DiggIt, and many others!
MINEOLA, NY—HVS has released the HVS Hotel Development Cost Survey for 2013-2014, which incorporates a range of data sources including development budgets, material and labor costs indexes and input from industry professionals, to track hotel construction costs in the United States. According to HVS San Francisco SVP Elaine Sahlins, author of the survey, research shows that by the end of 2013, the hotel investment market as a whole had largely recovered from previous recessionary years, but the trend in market-by-market hotel development has been uneven.
“The hotel fundamentals of stronger markets (primarily in coastal and urban locations) have improved to the point where the value of existing properties may be at or near the replacement cost, supporting an increase in new hotel construction,” Sahlins said. “Two trends continue to gain momentum: a proliferation of proposed select-service hotels and the increase in public/private partnerships to develop major hotels in a number of central business districts. Concurrent with the increase in hotel construction is a baseline reduction in hotel rooms across the US. As the inventory of obsolete hotel rooms contracts, a significant portion of new supply is replacing closed rooms.”
HVS has tracked hotel construction costs throughout the United States since 1976. The survey considers data for six lodging types: Economy/Budget Hotels, Midscale Hotels without F&B, Extended-Stay Hotels, Midscale Hotels with F&B, Full-Service Hotels, and Luxury Hotels and Independent Resorts.
Tags: HVS • development • Hospitality •
As we begin 2015, and what is expected to be a healthy year for the hotel industry with expansion, progress and innovation as key catalysts for growth, Hotel Business is right on board with that momentum, bringing you, with this issue, our own updated product.