construction costs
Hotel Development: Pencils Down
Jon Peck | October 17, 2023
By Jon Peck Hotel supply grew a meager 0.5% in 2022 and is forecasted to grow just 1% on average for the next three years, according to a CBRE June report. Meanwhile, demand is expected to exceed supply with some projections showing demand increased as high as 2%. Hotel Supply and Demand Historically, supply and demand have maintained a closer balance. This imbalance bodes well for existing hotel owners but not for hotel developers and the ecosystem that supports them (architects, construction firms, Interior designers, etc.). The reason for the imbalance is straightforward: the math doesn’t work for most new hotel projects, w...
Hospitality Finance Breakfast Briefing: Bringing Down the Cost of Capital and Filling Your Capital Stack
Jim Butler | July 26, 2023
By Jim Butler and the Global Hospitality Group® Earlier this week, the Global Hospitality Group® co-hosted a breakfast briefing in Los Angeles with CREDE, a leading real estate development and project management firm. The program focused on how hotel owners and developers can reduce their cost of capital and costs of construction while filling in gaps in their capital stack through a few critical construction management techniques and exploitation of both traditional and alternative financing options. Luigi Major, Managing Director of HVS, opened the program with an economic overview, providing an inspiring update on the state of the i...
