Share:

U.S. Hotel Construction Costs

Elaine Sahlins • 6/30/2020

Hotel Construction Costs Banner (image)

Cushman & Wakefield’s Hospitality and Gaming Practice provides consulting and valuation services for new and existing hotel properties across the globe.

In the first quarter of 2020, the hotel industry across the U.S. began to be impacted by the Covid-19 pandemic. Occupancy and average rate declined rapidly and a reported 18.0 percent of the national lodging industry suspended operations. As of June 2020, the impact of the pandemic on travel and hotel use is anticipated to require a number of years to recover to 2019 levels. Along with other sectors of real estate, hotel development has begun to be impacted by the economic consequences of the pandemic. The news continues to evolve, and we are hearing of projects being shelved, cancelled, and, for those near completion, opening have been postponed.

This report focuses on U.S. hotel development and is based on data and perspectives from a pre-Covid-19 environment. With a decline in construction expected in the next few years, some industry representatives anticipate a possible decline in construction costs. With the increased use of online meeting platforms and the reduction in food and beverage services, some changes in the outlets and meeting space facilities may inspire changes in physical design with an increased integration of technology. Whether these changes will be long term trend and how they impact development costs remains to be seen.  

Download the report to learn more.

Related insights

Hotel sensitivity (image)
Article • Hospitality

The Impact of COVID-19 on Hotel Values

The long-term impact on U.S. hotel performance will vary by market, and the durations of the initial decline and the subsequent recovery remain uncertain.
Elaine Sahlins • 4/15/2020
102021FoodSuppliersAssetscard
Article • Industrial

Future-Proofing the Food & Beverage Supply Chain

While the impacts of COVID-19 are still unfolding, it’s increasingly clear that food and beverage companies will need to continue to evolve their strategies when it comes to inventory management, real estate decisions, automation, packaging and sustainability among other things.

Ken Reiff • 10/1/2021
is confidence returning to retail market
Insights • Retail

Has confidence returned to the retail market? What lies ahead for retail consumers, tenants and landlords?

Retail began to transform well before the COVID-19 pandemic. It has, however, evolved a lot faster than expected and the pandemic has created a whole new environment which all market participants have to learn to navigate. Global real estate services firm Cushman & Wakefield has issued its latest report “Is Confidence Returning to the Retail Market?” highlighting what the retail market looks like from the perspective of tenants, landlords and customers. 
Małgorzata Dziubińska • 9/30/2021