2013 will be record year for hotel renovations
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The U.S. hotel industry is expected to spend $5.6 billion on capital expenditures this year, exceeding the most recent record of $5.5 billion set in 2008, according to research by Bjorn Hanson, the divisional dean of the Preston Robert Tisch Center for Hospitality, Tourism and Sports Management at New York University. Hanson estimates that one-fifth of hotels will receive such improvements this year—up from 15% in a typical year.
Investors and management companies that waived spending to offset lower profits in a weak economy are now looking at projections showing a much healthier outlook, Hanson says. Occupancy this year is expected to be at its highest level since 2007, while industry profits will be a record $46 billion, he says.