HVS's 2026 survey reports per-room development costs across six U.S. hotel product types based on 2025 construction budgets, with a median of $213,000 per room and luxury reaching over $1.6M.
Memphis is investing over $23.7B in Downtown revitalization, including a $230M convention center renovation, a $130M Peabody overhaul, and a city-acquired former Sheraton being rebranded as a Marriott by 2029.
Hotel development activity correlates directly with the ebbs and flows of hotel-sector performance. As we reached the peak of the current cycle in 2016, developers pursued hotel construction and redevelopment at a pace we haven't seen since 2006 and 2007. HVS has tracked Hotel Development Costs for the last three decades, collecting data from actual hotel cost budgets during our assignments. This year's sample reflects the largest sample HVS has analyzed given the number of hotels in the pipeline, as well as our growing presence in 35 U.S. markets. The data in this survey reflect budgets from 2016. With the availability of more data, we elected to add a lifestyle/soft-brand category and a dual-branded category; moreover, we bifurcated the extended-stay hotel category into midscale and upscale segments. These products represent some the fastest-growing sectors. Thus, our data now reflect nine product categories. The brands represented in each of our categories (in our survey data) can be found in the addenda to this study. In the last year since the 2015/16 study was released, the most common question posed to our authors addressed the delineation of geographic data by segment. While we can sort the data for smaller samples in specific markets, we are unable to provide meaningful conclusions because of the limitations in the data set. However, the analysis and inclusion of both the median and the mean help to balance the high- and low-cost markets. Our goal in sharing this publication is to provide a basis for developers and consultants in evaluating their hotel development projects. This report should not be relied upon to determine the cost for actual hotel projects or for valuation purposes, but rather, it is intended to provide support for preliminary estimates or support for actual cost estimates, as well as to show a comparison across the categories. Please continue to reach out to us with your comments and questions, as this feedback helps improve our annual survey.
Manhattan's Marriott Marquis once again welcomed the most prominent leaders in the hospitality industry for the 2017 NYU International Hospitality Industry Investment Conference, held June 5 and 6. Over the two-day event, industry experts gathered to share their opinions on a wide variety of ownership, management, branding, lending, and economic topics. Despite uncertainties in today's global political and economic climates, the overall tone remains one of cautious optimism.
The 2017 Meet the Money National Hotel Finance & Investment Conference, held May 8–10 in Los Angeles, brought together a strong showing of hotel owners, investors, lenders, brokers, consultants, franchisors, and brand representatives. Top U.S. hospitality executives served on panel discussions that addressed an array of topics related to hotel ownership, development, and financing, as well as the recent proliferation of new hotel brands and the impact of the global economy on the industry. True to this year's theme, "Opportunity or Peril: Finding the Right Key to the Right Door," a sense of cautious optimism echoed throughout the conference, supported by reports of continued hotel performance improvements in markets nationwide, balanced by the potential effects of the supply pipeline and global markets in the next 12 to 18 months.
Jones Lang LaSalle Hotels today released its bi-annual Hotel Investor Sentiment Survey, which reveals that an increased 52 percent of investors indicated a dominant ‘buy’ strategy over the next six months. Concurrently, respondents exhibited a 13 percent decrease in ‘hold’ intentions—a shift that signals that transaction velocity will increase in 2011. The firm’s proprietary survey is directed toward the world’s 6,000+ leading hotel investors and owners.
“The Canadian hotel development pipeline’s rooms under construction has decreased by 11.6 percent versus September 2009,” said Lana Yoshii, VP of content management at STR. “With only a 1.1-percent increase in supply during this period, new development has had sluggish growth. There are no rooms in the active pipeline phases (In Construction, Final Planning and Planning) for the Upper Upscale chain scale. The Upscale chain scale is reporting the most number of rooms currently In Construction (1,973 rooms).”
The total active U.S. hotel development pipeline comprises 3,362 projects totaling 352,356 rooms, according to the September 2010 STR/TWR/Dodge Construction Pipeline Report released this week. This represents a 21.9-percent decrease in the number of rooms in the total active pipeline compared to September 2009. The total active pipeline data includes projects in the In Construction, Final Planning and Planning stages, but does not include projects in the Pre-Planning stage.
The total active U.S. hotel development pipeline comprises 3,412 projects totaling 359,264 rooms, according to the July 2010 STR/TWR/Dodge Construction Pipeline Report released this week. This represents a 26.4-percent decrease in the number of rooms in the total active pipeline compared to July 2009. The total active pipeline data includes projects in the In Construction, Final Planning and Planning stages, but does not include projects in the Pre-Planning stage.
The Canadian hotel industry reported increases in all three key performance measurements during the week of 21-27 March 2010, according to data from STR. In year-over-year measurements, the industry’s occupancy increased 3.1 percent to 59.2 percent. Average daily rate ended the week virtually flat with a 0.2-percent increase to CAD$120.75. Revenue per available room for the week went up 3.2 percent to CAD$71.46.
The good news is that Canadian occupancy and average room rates for all hotels were higher than those in the United States in 2009. The Canadian occupancy was just over 56%, slightly higher than the 55% reported in the US, but more importantly our average room rate was $117.55 relative to $97.51 in the US. That's a $20 differential! The Canadian RevPAR was $65.95, down 11.9%, which compares to $53.71 in the US, down 16.7%. So 2009 was bad, but it was far worse south of the border.
The total active U.S. hotel development pipeline includes 3,647 projects comprising 378,145 rooms, according to the January 2010 STR/TWR/Dodge Construction Pipeline Report released this week. This represents a 35.9-percent decrease in the number of rooms in the total active pipeline compared to January 2009. The total active pipeline data includes projects in the In Construction, Final Planning and Planning stages, but does not include projects in the Pre-Planning stage.
The total active U.S. hotel development pipeline includes 3,939 projects comprising 417,412 rooms, according to the November 2009 STR/TWR/Dodge Construction Pipeline Report released this week. This represents a 33.9-percent decrease in the number of rooms in the total active pipeline compared to November 2008. The total active pipeline data includes projects in the In Construction, Final Planning and Planning stages, but does not include projects in the Pre-Planning stage.
The Canadian hotel industry posted declines in all three key performance measurements during the week of 1-7 November, according to data from STR. In year-over-year measurements, the industry’s occupancy decreased 9.6 percent to end the week at 59.1 percent. Average daily rate dropped 3.7 percent to finish the week at CAD$122.13. Revenue per available room for the week decreased 13.0 percent to finish at CAD$72.21.
In Q1 2009, the US Construction Pipeline decelerated rapidly and now stands at 4,918 projects / 619,431 rooms. Compared to the Pipeline peak in Q2 2008, this is a drop of 16% by projects and 21% by rooms, a substantial fall-off for a three-quarter period. Current pipeline trends are beginning to reflect the deep recession in the economy, the banking crisis, the evaporation of mortgage lending, and serious shortfalls in lodging operating performance.