U.S. hotel construction spending rose 30 percent year-over-year in November, suggesting a sustained rebound is in place based on developers’ confidence.
In November, private U.S. non-residential lodging construction rose to $19.8 billion, adjusted for seasonality but not price changes, according to the U.S. Census bureau’s release of overall monthly construction pending.
The numbers could represent a rebound in hotel construction after supply-chain constraints and labor woes plagued projects in 2021.
But it was unclear if the spending may be a lagging indicator when it comes to the impact of rising interest rates on future hotel deals. Demand to close deals may have dropped for some of future projects that are having trouble getting financing as inflation fears disrupt financial markets. The projects underway may have been approved before the interest rate hikes.