How to Successfully Navigate Hospitality Development Costs
💸 High interest rates and inflation drive hospitality construction costs up in 2025, with five-star hotel builds increasing costs twice as fast as general inflation. Labor shortages and material costs, especially in cities like New York, Chicago, and Los Angeles, compound these challenges. The Populus Hotel in Denver and Nobu Hotel in Atlanta showcase innovative cost-management through design-build approaches. Despite rising expenses, travel demand rebounds, with TSA data showing passenger numbers matching 2024 levels.
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