CBRE has released its regular U.S. Hotel Market Review and all arrows point upward, which is very good news for hospitality architects and designers. Demand is up, investment is up, room rates are up, revenue is up. Their findings support what we are seeing as hospitality architects – more work is coming through the pipeline than it has in years, and a consistently growing proportion of that work consists of projects located within the United States.
Hotel investment, which CBRE finds is largely driven by capital from outside the United States, continues to rise dramatically. Of course, that investment is in response to increasing demand that is not yet met by satisfactory supply. In its figures for the 1st quarter of 2015, CBRE cites a 4.2% increase in demand, with only a 1.0% increase in supply. Revenue per available room, (the every-important RevPAR), was up 8% in the same period, for the fourth quarter in a row, and the U.S. lodging industry is on track to achieve an all-time high occupancy rate of 65.7% in 2015.
Here at SB Architects, we will continue to watch hotel development trends closely, but all of this is very good news for all of us in the hospitality design industry.