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Latest cost-estimating guide sees upswing in renovation work.
By Matthew Hall
If your interior design business is experiencing a case of the summertime doldrums, take heart—some busier times may well be on the horizon. At least that’s the one of the conclusions contained in the recently released "Hotel Cost Estimating Guide" from Jonathan Nehmer + Associates Inc. and HVS Design.
That guide contains an article entitled “Hotel Capex on the Upswing,” in which JN+A’s Crawford Julie Bourque notes that while the hotel industry hasn’t fully recovered from the tough times of 2008-2009, in 2010, owners and lenders did show more interest in renovations, and the number of property transactions skyrocketed 250 percent from a year earlier.
“All that activity is filling the hearts of architects, designers and contractors everywhere with a hope for future work,” Bourque writes. “This increase in transactions led to a corresponding increase in the number of due-diligence surveys and property-condition assessments being conducted on transacted properties, another indicator that more renovations, conversions and maintenance work for distressed hotels may be in store.”
Borque concedes hotel construction projects continue to face some headwinds, including a still-tight lending market and rises in such construction materials as structural steel, lumber and plywood, due mostly to international demand for those goods. Despite that, she concludes: “We see clear signs of a capex recovery in the coming year.” Cheers to that.
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