HVS Releases 2013-2014 Hotel Development Cost Survey: 2013 Development Costs Rise; Market-by-Market Development Uneven
2014, which incorporates a range of data sources including development budgets, material and labor costs indexes, and input from industry professionals, to track hotel construction costs in the United States. According to HVS San Francisco Senior Vice President Elaine Sahlins, author of the Survey, research shows that by the end of 2013, the hotel investment market as a whole had largely recovered from previous recessionary years, but the trend in market-by-market hotel development has been uneven.
"The hotel fundamentals of stronger markets (primarily in coastaland urban locations) have improved to the point where the value of existing properties may be at or near the replacement cost, supporting an increase in new hotel construction," Sahlins mentions. "Two trends continue to gain momentum: a proliferation of proposed select-service hotels and the increase in public/private partnerships to develop major hotels in a number of central business districts. Concurrent with the increase in hotel construction is a baseline reduction in hotel rooms across the US. As the inventory of obsolete hotel rooms contracts, a significant portion of new supply is replacing closed rooms."
Since 1976, HVS has trackedhotel construction costs throughout the United States. The survey considers data for six lodging types: Economy/Budget Hotels, Midscale Hotels w/o F&B (without Food and Beverage), Extended-Stay Hotels, Midscale Hotels w/ F&B (with Food and Beverage), Full-Service Hotels, and Luxury Hotels and Independent Resorts.
and authors the annual Hotel Development Cost Survey (since 1998). She specializes in resort feasibility studies, appraisal of complex leases, partial interest appraisals, management company valuations, and hotel market analysis. Elaine is a state-certified general appraiser in California, and a current candidate for MAI designation from the Appraisal Institute (expected 2014).
Prior to joining HVS, she analyzedhotel investments for VMS Realty in Chicago, and was a review appraiser with Bank of America in San Francisco. Elaine holds an undergraduate degree from Barnard College, Columbia University in New York City and a MPS degree in Hotel Administration from Cornell University.
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HVS, the world"s leading consulting and services organization focused on the hotel, mixed-use, shared ownership, gaming, and leisure industries, celebrated its 35th anniversary in 2015. Established in 1980, the company performs 4,500+ assignments each year for hotel and real estate owners, operators, and developers worldwide. HVS principals are regarded as the leading experts in their respective regions of the globe. Through a network of more than 35 offices and more than 500 professionals, HVS provides an unparalleled range of complementary services for the hospitality industry. HVS.com