HVS Releases 2013-2014 Hotel Development Cost Survey
January 20, 2014 8:32am
2013 Development Costs Rise; Market-by-Market Development Uneven
HVS has released the HVS Hotel Development Cost Survey for 2013-2014, which incorporates a range of data sources including development budgets, material and labor costs indexes, and input from industry professionals, to track hotel construction costs in the United States. According to HVS San Francisco Senior Vice President Elaine Sahlins, author of the Survey, research shows that by the end of 2013, the hotel investment market as a whole had largely recovered from previous recessionary years, but the trend in market-by-market hotel development has been uneven.
“The hotel fundamentals of stronger markets (primarily in coastal and urban locations) have improved to the point where the value of existing properties may be at or near the replacement cost, supporting an increase in new hotel construction,” Sahlins mentions. “Two trends continue to gain momentum: a proliferation of proposed select-service hotels and the increase in public/private partnerships to develop major hotels in a number of central business districts. Concurrent with the increase in hotel construction is a baseline reduction in hotel rooms across the US. As the inventory of obsolete hotel rooms contracts, a significant portion of new supply is replacing closed rooms.”
Since 1976, HVS has tracked hotel construction costs throughout the United States. The survey considers data for six lodging types: Economy/Budget Hotels, Midscale Hotels w/o F&B (without Food and Beverage), Extended-Stay Hotels, Midscale Hotels w/ F&B (with Food and Beverage), Full-Service Hotels, and Luxury Hotels and Independent Resorts.
Elaine Sahlins is a Senior Vice President with HVS San Francisco, She joined the firm in 1997, and authors the annual Hotel Development Cost Survey (since 1998). She specializes in resort feasibility studies, appraisal of complex leases, partial interest appraisals, management company valuations, and hotel market analysis. Elaine is a state-certified general appraiser in California, and a current candidate for MAI designation from the Appraisal Institute (expected 2014).
Prior to joining HVS, she analyzed hotel investments for VMS Realty in Chicago, and was a review appraiser with Bank of America in San Francisco. Elaine holds an undergraduate degree from Barnard College, Columbia University in New York City and a MPS degree in Hotel Administration from Cornell University.
For a complimentary copy of HVS Releases 2013-2014 Hotel Development Cost Survey: 2013 Development Costs Rise; Market-by-Market Development Uneven please click here.
hotel development cost
Contact: Elaine Sahlins
+1 (415) 268-0347
Advanced Industry: The Driving Force Creating New Hotel Markets in China's High-Tech Zones
Project Management Considerations for Building Equipment Upgrades
2016 HVS Lodging Tax Report - USA
HVS Key Takeaways: The Southern Lodging Summit 2016
HVS Market Pulse: Island of Oahu, Hawaii
Cost Segregation Studies for Hospitality Assets
Brexit and Travel: The Risks of a Tourism Downturn in Asia
Canadian Lodging Outlook 2016 - Q2
UK Hotels Show Mixed Results in Q2 with Subdued Trading Forecast Says Hotel Bulletin
Evaluating Hospitality-Focused Mixed-Use Assets
2015/16 United States Hotel Franchise Fee Guide from HVS
An HVS Guide to Hotel Revenue Management
Container Hotel and Prefab Bungalow: Modular Building Construction in China
Renewed Hope for Israel's Hotels as Investor Interest Shows Growth, says HVS Report
U.S. Hotel Development Cost Survey 2015/16
Burst of Creativity as Serviced Apartment Operators Look to Broaden Their Appeal, Says HVS Report
HVS Key Takeaways: Boutique Hotel Investment Conference 2016
Two-In-One Hotels Set to Grow in Europe, Says HVS Report
U.S. Hotel Transactions Market Active in 2016, Significant New Supply Headed to Many Major U.S. Hotel Markets
Hotel Investors Say 'NO' to UK Brexit at HVS London Event
Please login or register to post a comment.