Learn which trends are influencing the hotel construction market.
Recently, the hotel construction market has maintained a relatively healthy amount of growth, especially compared to the last twenty years. However, those involved in the hospitality construction industry need to know what trends to expect in the near future. Here is an update on hotel construction market trends.
1) Slower Hotel Construction Starts
In 2018, hotel construction starts rose 4% to 77 million sq. feet and 10% to $18.5 billion. This was up from the slight reduction seen in 2017. However, in 2019, experts project that hotel construction starts will fall 8% to 71 million sq. feet and 6% to $17.5 billion.
2) Shift Towards Traditional Hotel Developments
In the past, hotel-casinos and hotel-convention centers played a major role in the hotel construction market. However, 2018 saw a decrease in these projects and an increase in more traditional hotel developments. Experts expect to see this trend carry on throughout 2019.
3) Drop in Occupancy Rates and Revenue Per Room
While 2018’s strong economy saw an increase in occupancy rates and revenue generated per room, this improvement is supposed to drop off in 2019. This year, U.S. economic expansion will hit a more moderate pace when it comes to the hospitality market.
These are some of the economic trends that are characterizing 2019’s hotel construction market. Ready to renovate your building this year? If so, contact Nikki Fox at Parkwest General Contractors at Nikki@ParkwestGC.com. Our expert team is ready to assist you with all your building renovation and construction needs today.