flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Hotel Report: Hotel market boom expected to continue for three more years

Hotel Report: Hotel market boom expected to continue for three more years


By Jim Haughey, Director, Research and Analytics, Reed Construction Data | August 11, 2010
This article first appeared in the 200707 issue of BD+C.

Hotel construction is booming. Jobsite spending has more than doubled since the beginning of last year, and the value of starts increased 70% since early 2006, according to Reed Construction Data.

Market expansion will continue for three more years, but the pace of growth will gradually fall back to match nominal GDP growth. This is the usual late-cycle pickup in a volatile market augmented by the growing importance of hotels that are themselves destinations and by a surge of foreign visitors from rapidly expanding foreign economies drawn to the U.S. by a persistent 3-5% annual depreciation of the dollar.

The hotel burst is ebbing because occupancy rates have stabilized with the opening of the first surge of new rooms. This has also halved the annual gain in revenue per available room from the 10% peak a few years ago.

Top 20 hotel design firms
(2006 billings in $ millions)

Firm Billings
Source: 2007 Giants 300 survey
Note: This ranking is based on firms that made the Giants 300 list.
1. HKS 61.10
2. Wimberly Allison Tong & Goo 57.40
3. Gensler 46.31
4. BBG-BBGM 32.25
5. OZ Architecture 22.00
6. Leo A Daly 21.98
7. Skidmore, Owings & Merrill 16.80
8. RTKL Associates 16.07
9. Smallwood, Reynolds, Stewart, Stewart 13.50
10. HOK 12.38
11. X-nth 12.16
12. Arquitectonica 11.76
13. NBBJ 11.23
14. Martin Associates Group 11.20
15. Hnedak Bobo Group 10.35
16. Jacobs Engineering Group 10.12
17. Flack + Kurtz 10.00
18. Hillier Architecture 9.95
19. Kohn Pedersen Fox Associates 9.68
20. Parsons Brinckerhoff 8.95

Top 20 hotel contractors
(2006 revenue in $ millions)

Firm Revenue
Source: 2007 Giants 300 survey
Note: This ranking is based on firms that made the Giants 300 list.
1. The Yates Cos. 1,296.30
2. Hunt Construction Group 417.90
3. Swinerton Inc. 376.42
4. The Turner Corp. 330.96
5. Structure Tone 286.20
6. Hensel Phelps Construction 213.10
7. Bovis Lend Lease 185.56
8. The Flintco Cos. 184.95
9. PCL Construction Enterprises 180.67
10. McCarthy Building Cos. 166.06
11. Walton Construction 157.92
12. The Walsh Group 142.50
13. Suffolk Construction 133.59
14. Dick Corp. 125.35
15. Pepper Construction Group 121.16
16. The Weitz Co. 119.20
17. Skanska USA Building 114.00
18. Ryan Companies US 113.42
19. M. A. Mortenson Co. 112.50
20. Gilbane Building Co. 105.93

boombox1
boombox2
native1
halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021