Will Occur in 2004
U.S. Lodging Industry Will Spend $3 Billion on Renovations in 2004
|NEW YORK, October 8, 2003 - "Forecast increased revenues for 2004 are
supporting the plans of hotel owners and management companies to return
to approximately 1998 levels for capital expenditures," said Bjorn Hanson,
Ph.D., global leader, PricewaterhouseCoopers Hospitality & Leisure
Practice. "We expect to see the increased expenditures over 2003
levels in guestrooms, public spaces, function rooms and relationship management
systems, and these are all more "guest facing" than the allocations in
In 2004, among changes to be seen in guestroom design:
Rather than being totally market-driven, hotel renovations are in part result of capital budgeting calculation of a percentage of revenues. After record total revenue growth between 1993 and 2000, the hotel industry was in the fortunate position of having made significant capital investments in physical assets prior to the 2001 downturn. In 2001 and 2002, capital expenditures represented among the largest dollar reductions of expense and expenditure categories.
PricewaterhouseCoopers Hospitality & Leisure research specialists
develop lodging industry forecasts using econometric models. They assist
clients in understanding past and future lodging industry trends.
Hospitality & Leisure research specialists have applied advanced statistical
and econometric techniques on a variety of
Bjorn Hanson, Ph.D.
|Also See:||Economic Revival in Second Half of 2003 Builds Momentum for Robust Lodging Demand Recovery in 2004 / October 2003|
|PricewaterhouseCoopers Forecasts Lodging Industry Expenses Will Rise in 2003 / February 2003|