Capital expenditures for the U.S. lodging industry are estimated to total a record level of $6.6 billion for 2016, up from $6.25 billion last year.. The total equals roughly $1,350 per guestroom, according to a report by Bjorn Hanson, a clinical professor with New York University’s School of Professional Studies Jonathan M. Tisch Center for Hospitality and Tourism. Spending has continued to grow steadily since 2011.
CapEx includes costs incurred with the purchase and installation of assets to maintain and improve hotel properties. Newer and pricier expenditures vary from new lobby concepts and redesigns to the replacement of bathtubs with walk-in showers, electronic keycard systems, and mandatory increases in high-speed internet bandwidth. New F&B concepts as well as in-room technology have also led to increased spending. Large investments are also being made in the enhancement of AV equipment for meeting and function spaces.
Hanson’s report notes that social media has become integral in owners’ ability to measure guest satisfaction and gauge necessary upgrades. The public nature of guest commentary, especially negative posts, have also resulted in additional expenses.