U.S. hotel industry is finally out of its rut and ready to build more rooms
Skift Take
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.
| City | 2010 | 2015 | |
|---|---|---|---|
| New York | $320,000 | Oahu | $665,000 |
| San Francisco | $306,000 | San Francisco | $606,000 |
| Oahu | $305,000 | Miami | $583,000 |
| Washington, D.C. | $255,000 | New York | $565,000 |
| Boston | $254,000 | Boston | $419,000 |
| Miami | $226,000 | Los Angeles | $314,000 |
| Los Angeles | $164,000 | Austin | $259,000 |
| San Diego | $148,000 | San Diego | $252,000 |
| Denver | $133,000 | San Jose | $247,000 |
| Seattle | $131,000 | Chicago | $246,000 |
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"
[gview file="http://www.hvs.com/NYU/HVS-NYU-2013-Presentation.pdf"]
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