U.S. hotel industry is finally out of its rut and ready to build more rooms
The economic crash that brought the industry down wasn’t just about people having less money to travel but hotel developers who build too many of the wrong kind of rooms. Hopefully we’ll see an extra layer of caution this time around.
Steve Rushmore, founder of HVS Consulting delivered a presentation at the NYU International Hospitality Industry Investment Conference today that laid out an incredibly rosy near future for the hotel industry.
After the dismal 2006-2009 period when the value of an typical U.S. hotel room dropped from $99,000 to $56,000, the industry waited for the numbers return to pre-crash values. In 2012, the value reached $94,000 and 2013 should finally see the 2006 mark surpassed with a $106,000 average value; by 2015 this is project to rise to $133,000.
The industry will also see some shifts in major cities over the next three years, as New York will slip down in the rankings of value per room.
|San Francisco||$306,000||San Francisco||$606,000|
|Washington, D.C.||$255,000||New York||$565,000|
|San Diego||$148,000||San Diego||$252,000|
It’s not just about existing hotels, though: Rushmore pointed to record lows for hotel mortgage interest rates. He finished his presentation with the assessment: “Today is the best opportunity to buy, sell or develop hotels since 1991″