The US hotel industry saw strong growth in 2015 and expects to see a continued rise in growth in 2016. However, though the industry is healthy, customers are becoming more selective. They want accommodations that are more classy, comfortable and amenable to an increasingly stratified mindset. Designers, contractors, suppliers and builders will be called upon to perform the repairs, refurbishing and new construction needed to meet this surging need. To do so, they will need reliable partners who can be trusted to engineer and manufacture quality, custom products under tight deadlines.
The growth of the hospitality industry has led to increased competition. This has created a need to design or redesign properties to cater to a more specific clientele, such as physical fitness buffs or the urban hipster. And there are no signs that the growth will diminish into 2017 as demand continues to outweigh supply. US Midscale and Independent segments will likely have the largest increases, while Luxury and Upscale will see the greatest rise in ADR. Even Economy will grow – it will have the highest increase in RevPAR at a whopping 7.2%. The growth is not limited just to the sunny South. Rather, properties located in all corners of the country must respond to the rising demand. RevPAR at 21 of the top 25 markets is expected to increase 5% or more. Denver, Phoenix and Tampa/St. Petersburg will get as high as 10 – 15%!
As competition increases, the hospitality industry will be spurred into re-purposing existing sites or building brand new locations to cater to specific lifestyles and identities. Any way you look at it, designers, contractors and builders will need reliable suppliers to fuel this industry growth.