Hotel Construction Trends in Northeast of USA

Top Hotel Construction Trends in USA

According to the year-end U.S. Construction Pipeline Trend Report(Jan 2018) from Lodging Econometrics (LE),  hotel construction market in U.S. has grown by 4% Year-Over-Year (YoY). With the emergence of a new booming economy, the pace of global growth is building momentum in coming years. The fourth quarter earnings reports by established brands Marriott, Hilton, Hyatt all show strong RevPAR and corroborate with the latest hotel construction trends.

In a recent Pipeline Research Report shared by STR, there was a 14.7% increase in the hotel room construction compared to previous year. It makes a growing trend of 580,427 rooms across 4,843 hotel projects are Under Contract stage in the United States.

Russell and Dawson recently added construction services to its portfolio of services, here is a video of one of the ongoing A/E/C projects – Construction of Fairfield Inn & Suites at Williamstown, MA and expect few more projects to start in Q2, 2018. As an AEC (Architecture, Engineering and Construction) firm. These are the following hotel construction trends driving the US market.

1. Re-purpose History

Many of the recently developing projects are focused on converting historic properties into grand, five-star landmark hotels. Such trend is a key attraction area for guests to experience the royal historical experience. Moreover, most cities are offering additional incentives for redevelopment and historic tax credits enabling a smart investment for hotel chains.

One of our current project is about converting the building (known as gateway to East Boston for the local community) which was constructed in 1912 as a shoe factory into a hotel which will blend local and historic elements to create a familiar yet distinct hospitality offering for the area.

2. Design Renovation

One of the key strategies to staying competitive in the hotel industry is renovation by transforming existing infrastructure with modern amenities. Last year has recorded the highest number of hotel renovation projects in the U.S. Many leading brands are proactively changing their standards based on guest experience, and implementing design changes to the room layouts, guest bathrooms, and overall hospitality experience.

One of our ongoing project is about renovating and re-branding of Howard Johnson (built in 1969) to Aloft Hotel  – a five-story structure with a new retail use and site improvements such as additional parking space,  groundwater recharge, LED site lighting, energy improvements.

3. Mixed-use Development

Mixed-use development continues to be the trend since past 2 years. Hotel developers and real-estate investment firms are continue to see RFPs from municipalities to develop mixed-use project in their township or municipality. In such kind of projects, need is to combine hotel, retail and restaurants/bars since it benefits local patrons and visiting travelers as it provides a range of options.

One of our redesigning project includes renovation of 16 years old hotel into an upscale hotel with mixed-use development.

4. Aesthetic Integration – Patterns & Textures

Trend comes from “Showcasing Local”.  Hotels have responded by abiding town/city requirements called out by government officials to maintain town/city’s heritage or look. Fairfield Inn & Suites at Williamstown, MA changed its facade design to brick façade so it looks like a factory rather than a typical chain hotel and maintain Williamstown’s heritage as a town with brick factories and academic buildings. Russell and Dawson is a design-build contractor for this Fairfield Inn & Suites hotel project.

Construction Forecast in 2018

As per the North American Construction Forecast Report by Oldcastle Business Intelligence, Construction is expected to grow almost 5% in 2018. It shows significant development projects in South East US, followed by the West, then Mid-West and North-East regions. Below is a pictorial view of the 2018 construction forecast in each state.

Map of US Hotel Construction Trends forecast

US Hotel Construction Trends forecast 2018

Northeast part of US has been one of the prime area involving hotel construction business. Looking at STR’s report, Upper Midscale construction (64,269 rooms across 625 hotels) accounted for the most rooms followed by Upscale construction (59,979 rooms across 446 hotels).

Now looking at the massive demand for construction projects, you would be wondering do we have enough workforce to deliver it? The national construction workforce had seen a minimal employment growth over the last nine months. Which leads to delayed project timelines and opportunity for AEC, EPC service providers. The hot topics will always center on the critical labor struggles. Focusing on productivity for contractors, minimum interest rates for loans and increased reliance on public funding.

Thanks for Reading.

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Top Hotel Construction Trends | US Market Research
Article Name
Top Hotel Construction Trends | US Market Research
Given are the latest hotel construction trends which are changing the hospitality landscape in the US. It outlines the construction trends of US Hotel Industry.
Publisher Name
Russell and Dawson