October 29, 2015

Hospitality Giants 2015 Research: Market Sector Breakdown

Nearly 60 percent of hospitality projects involve hotels. That number hasn’t fluctuated much, and these Giants expect it to remain consistent and, even better, the fees currently earned for that level of activity, $402 million, to increase 10 percent. And what about those hotels? They are nice hotels. Luxury hotels—where the biggest growth has been, as determined by the past two surveys—were clients for 86 percent of the hospitality Giants, and 68 percent worked on boutique brands. Compare that to 53 percent for mid-level or economy.

Where else do the hospitality dollars come from? Almost 74 percent of the group did restaurant work, $106 million worth. Meanwhile, 55 percent visited resorts, nearly 50 percent hung out in bars and nightclubs, 43 percent underwent a spa treatment, and 22 percent played the casino game. It
was 20 percent for honorary memberships in country clubs.

This next batch of numbers really highlights the trending. Furniture and fixtures, plus construction, came in at $20 billion. Which, yes,
is robust but is also flat year-to-year. Not to mention that these Giants had forecast a whopping $35 billion. Their optimism is slightly more cautious for next time: up 11 percent to $22 billion.

Renovation continues to trump new construction, now by 58 percent versus 42. Almost half the firms said renovation made up at least 60 percent of their work, while 16 firms said 90 percent. The fixer-uppers are predominantly in the U.S.: 72 percent of Giants projects were domestic, the highest number in six surveys. Looking ahead, 85 percent of firms say the U.S. shows the greatest promise, with the West Coast and South the expected hotbeds.


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2015 Hospitality Giants: Fees

2015 Hospitality Giants: Staff

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