NYU Report Claims Hotel Capital-Expenditure Spending Could Soar 70% in 2022
Increase Comes Off Pandemic-Driven Record Lows
NEW YORK — The total amount of U.S. lodging industry capital-expenditure spending is forecast to increase by approximately 70% in 2022 from the record lows of approximately $2 billion in 2020 and 2021 to $3.4 billion in 2022, after an unprecedented decline in response to demand and the financial effects of COVID-19.
NEW YORK — The total amount of U.S. lodging industry capital-expenditure spending is forecast to increase by approximately 70% in 2022 from the record lows of approximately $2 billion in 2020 and 2021 to $3.4 billion in 2022, after an unprecedented decline in response to demand and the financial effects of COVID-19.
That is according to the U.S. Lodging Industry Capital Expenditures Trend Analysis Report by Bjorn Hanson, an adjunct professor at the New York University School of Professional Studies' Jonathan M. Tisch Center of Hospitality. The report is based on extensive interviews with operators, press material, information around brand standards and other data.
Capital expenditures are defined in the report as costs incurred with the purchase and installation of capital assets to maintain, renovate and enhance hotels. For example, wall coverings and carpeting are generally included as capital expenditures. Smaller improvement like painting generally are not. New construction, room additions and major construction to convert a hotel to a significantly different property were not included as capital expenditures for the report.