The United States are a hotbed for hotel construction. This is partially orchestrated by travel and tourism trends and it should not come as a surprise to anyone that more and more investments are being made toward commercial real estate, especially in the hospitality industry.
The travel market in the US is among the leading beneficiaries of a bulging global traveller pool having grown to over 76 million over the past 20 years. And the numbers of bookings is forecasted to go beyond $170 billion in 2018. And the hotel real estate and construction businesses are taking advantage of upward trends. As the most recent report by the U.S. Construction Pipeline Trend shows, by the end of 2017 about 975 hotels opened their doors to the public, accounting for a growth of over 2%. While 2018 is expected to see over 130,200 new hotel rooms opening up.
Florida is among the top states where these hotel surges are anticipated to happen, specifically Fort Lauderdale, alongside New York, Seattle, Nashville and Boston. Needless to say, Florida is a top travel destination globally which drives the state’s growth in real estate. And for a good reason: we have all dreamt about going to the Sunshine state and those who had are bound to return. Even more so, it is believed that for every one resident there are about five visitors hosted.
But hotel construction is no walk in the park. A 20-year long analysis of construction trends conducted by real estate publication The Real Deal actually shows that building a hotel might just be the most time-consuming and complex construction undertaking out of all property types. The study looked into over 6,000 new buildings, including residential and retail buildings, offices and hotels. Their key finding pointed out that the completion time for a hotel was estimated to almost four years, while the rest took just under three years. It may not seem like a big difference for the inexperienced eye, but that 23% translates into high spending and losses.
One of the main challenges associated with this is considered to be the permitting stage during which hotels spend on average over half (56%) more time waiting to gain their first permits as opposed to other buildings. Certainly, it is not the only driver. Size certainly dictates the timeline as well. If we take into consideration that the average mid-sized hotel is about 50,000 square feet while the mid-sized office is just 15,000, it is understandable why the timeframe differs.
When it comes to the look and feel of the building, numerous forward-thinking hotel brands and contractors are now tapping into a golden opportunity that seems to be greatly received by clients: luxury at an affordable price. This means travellers get to experience the lifestyle of a pricey hotel wrapped up in a package that is pocket-friendly.
Nevertheless, hotel building projects can be complex and an experienced contractor is mandatory given the high stakes involved and the nuances of design and construction.
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Contact Person: Media Relations
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Phone: (954) 229-2006
Address:5601 Powerline Road, Suite 401
City: Fort Lauderdale
State: Florida 33309
Country: Canada
Website: https://dantobuilders.com/