We at All Truss are experiencing first hand the surge in hotel building with several new projects recently finished,in the midst and in upcoming seasons’ planning. Below are some of the factors and numbers in play in this exciting sector.
Business and other travelers looking for a home on the road will have many,many new choices this year, as a building boom gives rise to hundreds of new hotels from Coast to Coast.
At least 865 hotels, with 103,230 rooms, are currently under construction and scheduled to open in 2016, according to hotel research firm STR, as developers get in gear for surging demand.
“Post-2009, lenders in the hotel space got very skittish,” says Jan Freitag, STR’s senior vice president of lodging insights. But “the industry continues to break records on the demand side and on the revenue side. … ” Developers are playing catch up, and everyone is on hurry to build and get their investment into the black.
With a goal of gaining brand loyalty from a new generation of tech-savvy, city-oriented (rs as well as suburban and resort area office park)travelers the big name groups are on the build: Hyatt Hotels Corporation expects to open 11 new hotels chock a block with amenities for digital business travelers under their brand this year. Hilton Worldwide, an empire constituting 11 hotel names under its umbrella plans to bring more than 30,000 rooms, or 270 hotels online in the U.S. this year.
“Existing hotels have become expensive,” says Bill Fortier, Hilton Worldwide’s senior vice president of development for the Americas. “Money is going toward new development today and… we’re going to see a record number of deals in 2016.”
USA TODAY, STR, AH&LA