Here are some of the issues that increase hotel construction and renovation costs.
The strong U.S. economy has led to a period of growth in the hotel construction and development market. However, the cost of these projects has steadily increased and it does not seem like these price increases will level out anytime soon. Here are some of the factors that are contributing to these higher renovation and construction costs.
- PIP/Brand Standards
With hotel guests more likely to leave reviews and post about their hotel stays than ever before, hotels are under pressure to maintain their brand image and keep their properties looking fresh. Because big hotel brands want to integrate the newest guest technologies, the freshest design elements, and the most creative guest experiences, their renovation and construction costs are naturally higher.
- Labor Shortages
The lack of experienced and skilled laborers in the construction industry has been a growing issue in recent years. Because there is a high demand for design and construction teams, skilled construction experts can charge more for their services, knowing that hotel owners will pay because, well, they have no other choice.
- Increased Material Costs
Finally, hotel construction and renovation costs are higher because the cost of building materials has also increased. From textiles to casegoods to technology, it seems that everything involved in the construction process has experienced a significant price hike, and hotel owners are left to foot this bill.
These are some of the factors that are contributing to higher hotel construction and renovation costs. Are you looking for a professional construction team to work with you and your budget? 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.