Hotel construction just keeps booming. Job site spending has more than quadrupled since the beginning of 2004 and is 42% above a year ago.
However, Reed Construction Data reports that the growth of new project activity is slowing from a 70% pace in 2006 to 10-15% in 2007-09. The huge increase in 2006 was for large destination hotels to serve the strong U.S. economy and foreign tourists attracted by the falling U.S. dollar. This added demand for hotel rooms is being sustained during the current economic slowdown but is no longer accelerating.
Hotel development is expected to continue to increase in tight markets like New York City, but will slow significantly in 2008-09 in markets that rely on domestic business and budget consumer travel.
Top 20 hotel design firms
(2007 billings in $ millions)
| Company | Billings | |
| Source: 2008 Giants 300 survey Note: This ranking is based on firms that made the Giants 300 list. |
||
| 1. | HKS | 81.52 |
| 2. | AECOM Technology Corp. | 76.17 |
| 3. | Gensler | 73.50 |
| 4. | Wimberly Allison Tong & Goo | 64.59 |
| 5. | Arup | 44.00 |
| 6. | Leo A Daly | 26.67 |
| 7. | BBG-BBGM | 22.50 |
| 8. | OZ Architecture | 22.44 |
| 9. | Parsons Brinckerhoff | 21.92 |
| 10. | Jacobs Engineering Group | 19.67 |
| 11. | BLT Architects | 17.29 |
| 12. | X-nth | 17.06 |
| 13. | Smallwood, Reynolds, Stewart, Stewart | 16.00 |
| 14. | Martin Associates Group | 14.92 |
| 15. | Arquitectonica | 14.56 |
| 16. | NBBJ | 14.34 |
| 17. | RMJM | 14.26 |
| 18. | HOK | 14.23 |
| 19. | DeSimone Consulting Engineers | 13.20 |
| 20. | EwingCole | 12.84 |
Top 20 hotel contractors
(2007 construction value put in place in $ millions)
| Company | Value put in place | |
| Source: 2008 Giants 300 survey Note: This ranking is based on firms that made the Giants 300 list. |
||
| 1. | Yates Cos., The | 1,143.41 |
| 2. | Turner Corp., The | 564.01 |
| 3. | PCL Construction Enterprises | 530.90 |
| 4. | Hunt Construction Group | 460.00 |
| 5. | Hensel Phelps Construction | 403.09 |
| 6. | Swinerton | 400.40 |
| 7. | Structure Tone | 333.43 |
| 8. | Flintco Cos., The | 314.40 |
| 9. | McCarthy Holdings | 295.27 |
| 10. | Webcor Builders | 263.63 |
| 11. | Holder Construction | 245.80 |
| 12. | M. A. Mortenson | 234.88 |
| 13. | Skanska USA Building | 200.00 |
| 14. | Walton Construction | 189.28 |
| 15. | Balfour Beatty Construction | 187.12 |
| 16. | Suffolk Construction | 182.96 |
| 17. | Pepper Construction Group | 168.42 |
| 18. | Dick Corp. | 167.04 |
| 19. | Walsh Group, The | 165.20 |
| 20. | Manhattan Construction | 154.34 |
