The U.S. hotel industry is on track to invest $5 billion this year in capital expenditures, according to a new report from Bjorn Hanson, divisional dean of the Preston Robert Tisch Center for Hospitality, Tourism, and Sports Management, NYU School of Continuing and Professional Studies. The figure represents a 33 percent rise over 2011’s $3.75 billion, which reflected an increase of 39 percent over 2010 levels, following decreases of 40 percent in 2009 and an additional 18 percent decline in 2010.
Capital expenditures include:
- In room iPads
- Guestroom design including work spaces, radio alarm clocks, and sound systems (many are MP3 compatible), seating, bathrooms, and lighting
- Beds and bedding
- High-speed internet access
- Flatscreen TVs
- In-room amenities including irons/ironing boards and coffee makers
- Guest services and conveniences including enhanced complimentary breakfasts, check-in/check-out kiosks, and expanded business centers
- Redesigned lobbies
- Reconcepted restaurants directed at Gen-Xers and Millenials
- Added or enhanced fitness facilities
- Added or enhanced technology for meeting rooms and ballrooms
Some brands and management companies waived many new and existing requirements for capital expenditures to help owners through this period of decreased financial performance, but they are now requiring these improvements to maintain quality and brand, Hanson notes.
