- Written by Chuck Taylor
Hospitality construction is growing across all hotel types, including extended stay and economy.
U.S. economic growth, higher levels of disposable income and rising corporate profits have led to more business and leisure travel and, subsequently, an increase in hotel projects. We expect a steady upward trend in hotel construction in 2015 as the industry continues stabilizing after a tumultuous decade.
In 2008, hotel construction was at its peak with 1,341 hotel projects/154,258 rooms under way, according to Lodging Econometrics. At the end of that year, the global financial crisis hit – stock markets dropped worldwide, the housing market plummeted and unemployment spiked. From 2008 to 2012, the global recession severely impacted the hospitality market.