Pace of hoteldevelopment slows in USA
The pace of new hotel developments in the USA fell during the second half of 1998, says hospitality consultant HVS International. It predicts that this slowdown will continue into 2001.
The fall in new hotels went hand-in-hand with declines in the growth rate of development costs and in revenue per available room (revpar). Nevertheless, the total number of hotel rooms grew by 4% last year, up on 1997's 3% increase.
Development costs, which peaked in 1997, grew at or above the level of inflation. Land prices grew most weakly, and actually declined in some markets.
Revpar growth outpaced the increases in construction costs, but continued to tumble from the peak reached in 1996.