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.
Mr. Nehmer is a licensed architect with expertise in all facets of architecture and interior design, design management, project management, and construction administration. His 20 years of experience includes work as an owner's representative in the direction and management of commercial, institutional, residential, and hospitality projects.More from Jonathan Nehmer
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