NEW YORK CITY-Capital expenditures on hotels this year are set to soar to new heights. New research by Bjorn Hanson, divisional dean and clinical professor of the New York University Preston Robert Tisch Center for Hospitality, Tourism and Sports Management, forecasts the total monies that will be spent on improvement at hotels in 2013 will reach approximately $5.6 billion, exceeding the prior record levels reached in 2008.
The increase in 2013 is 107.4% over 2010's $2.7 billion. There were decreases of 40 percent in 2009 and an additional 18 percent decline in 2010 in response to decreasing occupancy, ADR, RevPAR, and profits in 2009.
This year's expenditures reflect deferred items and the requirement many hotels are facing to meet new standards, Hanson says. Many brands and management companies waived new and existing requirements involving capital expenditures to help owners through the lean years, but they're now mandating the changes.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
