U.S. Hotel Expansion Threatened by Construction Worker Shortages
U.S. hotel companies are facing a shortage of construction workers just as they are building new brands and properties. The result: delayed projects and higher costs. The industry will have to get more aggressive to recruit workers if it plans to keep the momentum going on its expansion plans.
The hotel industry is experiencing one of the tightest construction labor markets in years, threatening to delay new builds and renovations at a time when major hospitality companies have planned the most robust pipelines in years.
Hotel companies big and small have reported that they are dealing with a severe shortage of qualified construction employees from the electricians and carpenters working on the ground to the managers tasked with keeping projects on schedule.
Research firm STR said the number of hotels in construction as of November has increased 3.9 percent over the same time last year. Meanwhile, the U.S. Bureau of Labor Statistics reports that there are about 380,000 unfilled construction jobs in all markets. Another 747,000 construction workers will be needed by 2026.
