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With the number of projects in the pipeline, the future looks bright for our industry
Despite the ripple effect of challenges caused by the pandemic- including labor shortages, supply chain issues, and construction delays-the hospitality industry has proven its resiliency. "2023 is the beginning of the operating and industry real estate recovery. It doesn't mean it's not going to be bumpy, but the light is very clear at the end of the tunnel, and we can definitely see it," says Bruce Ford, senior vice president and director of global business development at Lodging Econometrics. "Everybody's going to have their take on the approach to the marketplace, but suppliers of products and services should feel confident that 2023 will be better than 2022." Take Pyramid Global Hospitality, established last year in a merger of three hotel management companies, which is reporting considerable growth and development, including the addition of 59 properties to its portfolio. And, following a record 2022, hotel and development company Concord Hospitality anticipates significant growth in 2023 for its upper upscale and restaurant and bar assets.
According to Lodging Econometrics, there are 2,725,945 rooms in development worldwide. The U.S. currently leads global development with YOY growth of 22 percent and 900,893 rooms in the works across 7,395 projects. The top markets are Dallas (202 projects), Atlanta (187 projects) and Los Angeles (144 projects), including a record number of conversions. "Owners are taking a hard and fast look at what they can do in their existing portfolios," adds Ford. "The activity in the hotel industry is going to feel like [we] are on the beginnings of a recovery cycle. Lots of renovation, of properties converting and changing brands, some hotels selling, and new construction projects that are underway but less delayed than in the previous two years."
Even with the current uncertain economy, the slew of forthcoming projects signals an industry on the mend. Here, we take a closer look at the state of hospitality development, including booming destinations, notable trends, and much-anticipated launches.
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