2013 Hotel Cost Estimating Guide
For the past several years the conversation around tables at hotel industry functions has focused on downturns, high construction costs, a lack of financing, less-than-ideal average daily rate and finally, a slow and steady recovery. The good news: The lodging industry has turned the corner for the most part when it comes to fundamentals. Hotel demand is at an all-time high while supply growth remains low, according to STR, and revenue per available room growth is catching up—and in some cases surpassing— 2007 record highs. While ADR (U.S. average ADR was $107 in February 2013, according to STR) has not reached former peak levels, particularly when inflation factors in, most data show RevPAR driven by ADR instead of occupancy, a definite change from years past.
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HVS is the world's leading consulting and valuation services organization focused on the hotel, restaurant, shared ownership, gaming, and leisure industries. Established in 1980, the company performs more than 4,500 assignments per year for virtually every major industry participant. HVS principals are regarded as the leading professionals in their respective regions of the globe. Through a worldwide network of over 50 offices staffed by 300 experienced industry professionals, HVS provides an unparalleled range of complementary services for the hospitality industry. For further information regarding our expertise and specifics about our services, please visit www.hvs.com.