Hotel CapEx Hits New High
ByNetwork with the nation’s top CRE dealmakers at RealShare APARTMENTS in Los Angeles on Oct 21-22,RealShare INDUSTRIAL in Atlanta on Nov 3-4, RealShare NEW LEASE WEST in Los Angeles on Nov 11-12 andRealShare HEALTHCARE REAL ESTATE in Scottsdale, AZ on Dec 2-3.
Critiques on social media have also prompted some hotel capital improvements, Hanson says.
NEW YORK CITY—Capital expenditures for the US lodging industry are projected to set a new record this year, according to an analysis by Bjorn Hanson at New York University’s Tisch Center for Hospitality and Tourism. The $6.4-billion tally, which Hanson derived from interviews with key hotel executives and from other sources including media reports, represents an increase of 7% over 2014.
“Although total 2013 US capital expenditures were a new record” at $5.6 billion, “the nominal amount per available room was still slightly less (approximately 3%) than in 2008,” writes Hanson, clinical professor at the Tisch Center. “The ‘14 amounts were a record level for both real and nominal values, and new records are forecast to be spent in 2015.” CapEx in the hotel sector has increased each year since 2010; it had also increased annually between 2005 and ‘08 before plummeting about 40% in the wake of the credit crisis…
