Spending on hotel improvements is on the rise
After a two-year drop in spending, hotel owners across the country are beginning to invest again in improvements, according to a new study released Tuesday.
The U.S. lodging industry is expected to spend about $3.5 billion on hotel improvements and expansions, a 30% increase from 2010, according to a study by Bjorn Hanson, a dean at New York University's Preston Robert Tisch Center for Hospitality, Tourism and Sports Management.
As demand for hotels dropped sharply during the economic downturn, hotel owners cut back on capital investments. In 2009, hotel owners spent $3.3 billion on improvements and expansions, a 40% drop from the previous year, according to Hanson's report. In 2010, capital spending dropped an additional 18% to $2.7 billion, according to the report.
Hanson based his forecast on interviews with hotel executives, management companies and design and construction representatives, among other sources.
-- Hugo Martin
Photo: Ivan Hernandez works on a wall in a ballroom at the Westin Bonaventure Hotel in downtown Los Angeles during a renovation project in December 2010. Credit: Los Angeles Times)