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News: Business + People
November 15, 2017

Capital Expenditures Rise to Record Level in 2017

The U.S. lodging industry is expected to see $6.9 billion in expenditures this year.

Words by: Will Speros

The recently updated Hotel Indigo Dallas
The recently updated Hotel Indigo Dallas

News:

Business + People
November 15, 2017

Capital Expenditures Rise to Record Level in 2017

The U.S. lodging industry is expected to see $6.9 billion in expenditures this year.

Words by: Will Speros

A new analysis from Bjorn Hanson, clinical professor at New York University’s Jonathan M. Tisch Center for Hospitality and Tourism, reports that capital expenditures (CapEx) in the U.S. lodging industry is expected to reach a record high of $6.9 billion this year, an increase of 3.8 percent and approximately $1,400 per available guestroom. RevPAR is also slated to increase between 2 and 2.5 percent, thus allowing CapEx to grow 60 to 70 percent more than the percentage increase in RevPAR. The report is sourced from information provided via interview with select executives in hotel management as well as design and construction.

Among the newer and more costly CapEx programs in place today include new lobby designs and concepts, the replacement of tubs and showers for walk-ins, and enhanced technology from web access to electronic key card systems. Social media has also played a significant role in recent years, reflecting property conditions, amenities, and designs to a broader audience. Expenditures in place to support amenity improvements also include new F&B concepts and upgraded in-room amenities from coffee makers to iPads.

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