construction-costs-hospitality

Last year, 2016, marked a year of transition for the overall U.S. hotel market, as the major performance indicators of occupancy and rate growth moderated, and new hotel development accelerated. The hotel pipeline remains robust as new hotels are constructed and proposed for many markets across the country. With a wider range of available brands and incentives for new hotels, development is flourishing in both the top 25 markets (as defined by Smith Travel Research) and in secondary and tertiary locations.

The feasibility of a new hotel is driven by a number of factors, foremost among them – the availability of sites, the costs to build, the price and accessibility of financing, and the demand for hotel rooms at a rate that supports all these and other elements.

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