Many forecasters have calculated the new construction in the Hospitality Industry will be in great demand in 2015 in the Southeastern Untied States, especially in the Florida and Georgia areas.
Hospitality Real Estate Counselors’ Paul Sexton told the Orlando Business Journal that “the success of the downtown hotels … is going to be dependent … on when shovels get in the ground on major new office space, the lifeblood of most city-center hotels.
The new multi-family developments and the [now] four venues are terrific additions to our community, but they are only the icing on the cake when it comes to generating hotel room nights for our downtown hotels. The cake is office space.”
According to the Hotel News Now, “All segments of the U.S. lodging industry will enjoy strong performance for the foreseeable future according to the recently released December 2014 edition of PKF Hospitality Research’s (PKF-HR) Hotel Horizons® (PKF-HR is a CBRE company). Rising levels of employment, combined with increased geographic expansion of the national economic recovery, will result in revenue per available room (RevPAR) growth in excess of long-run averages for all hotel chain-scales, most location categories and the vast majority of markets from 2014 through 2017.”
“No matter what hotel performance indicator you look at for any type of hotel, we foresee extremely favorable movements the next few years,” said R. Mark Woodworth, president of PKF-HR. “Our firm is projecting demand growth to outpace changes in supply in the U.S. through 2016. That will result in industry wide occupancy levels at, or above, all-time record levels through 2017.”
“The current favorable economic outlook is not only deep, but long as well,” Woodworth concluded. “That will result in an extended period of peak performance for all participants in the U.S. lodging industry. As if that were not ample good news, the world oil market dynamics are generating prices for transportation fuel that work to the benefit of travelers. If low energy prices are sustained, 2015 hotel performance will be better than expected.”
Attractive Rates
According to Access Point Financial, “We expect mortgage rates to continue to be attractive for hospitality projects throughout 2015 and demand will attract new investors to the market. We expect to see a number of new lenders popping up in the hospitality marketplace hoping to cash in on the growing demand for capital.”
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