Everyone knows that the pandemic has made an impact across different industries. Some fields thrived while others were forced to pause, if not ultimately end, their operations. The travel and leisure industry bared the brunt of it all, especially as consumer behavior has changed drastically in previous months.
However, what about renovations and hospitality construction specifically? How are these project types faring amidst the pandemic? More importantly, is there a silver lining to all these?
Dodge Data & Analytics, a North American commercial construction data provider, compiled a timeline of project statuses in every state. The list shows that while the industry did not completely shut down, the work suspensions in construction sites have caused a delay in project timelines. Office closures and the hesitance of some banks to lend money for hotel developments have also slowed down projects and pushed back timelines.
While the Dodge Data & Analytics list mainly highlights the decisions of each state’s rules, another reason behind halted projects is the supply chain disruption. Mary Beth Cushall from HVMG said that it was hard to source materials from China for some time back in March.
This was supported by some findings of Beroe, Inc., a procurement intelligence and supplier compliance solutions provider. They stated that the spread of the virus in China led to the suspension of LVT and rolled rubber manufacturing—materials that are regularly shipped to the U.S.
The delays caused by this disruption, along with owners trying to ensure that they have enough funds to pay debt service, have led to developers deciding to pause a project indefinitely.
The bright side
While the impact seems to be worrisome, there are states that still pushed through with their renovations and new hospitality construction projects. Amid closures in some areas across North America, Los Angeles is expected to add 14 new hotels and a total of 3,100 rooms before the year ends. The city remains to be the top hotel construction market for the 4th consecutive quarter.
Lodging Econometrics, a Portsmouth-based lodging industry consulting partner for global real estate intelligence, recorded a total of 1,276 active renovation and conversion projects across the country. This shows that while the pandemic has slowed down the hospitality construction, the chances of bouncing back and continuing a project is a possibility in the new normal.
Other hotels and firms have used this opportunity to refurbish. The soft trading conditions became the perfect opportunity to revamp their properties as it would be considered disruptive to the guests on a regular day.
A Hotel News Now article points out that while COVID has impacted many businesses, it is the owners who felt the most pressure. Habitas co-founder Kfir Levy remains positive, noting that the crisis is forcing owners to “rethink and redefine, [to] prioritize the conversation we come away with.” He adds that it is an “opportunity to rethink programming while keeping our DNA.”
To conclude, project timelines may have slowed down, with some even halting completely. Despite this, there is hope for the hotel industry. This is proven by how some states are able to still push through with their renovation projects and how companies were able to identify opportunities to improve even through trying times.
About Triple Crown Construction:
Triple Crown Construction is a Partner-Grade provider specializing in pre-construction, commercial construction and hospitality renovation. This allows you to focus on driving revenue while we focus on your construction projects.
Since 1991, TCC has provided expertise in delivering successful turnkey solutions to its clients across the nation. Efficient processes and cutting-edge technology has enabled TCC to maximize client value while minimizing project pitfalls. A core team of Estimators, Project Managers and Superintendents provide guidance and support to a network of TCC Certified subcontractors. Nestled in picturesque Frederick County, MD, TCC is an active member of the community, routinely participating in local events and charity programs.
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Partner-Grade is a shared commitment to and investment in our Client-Partners’ interests. We offer confidence through knowledge in the construction process, turnkey projects and a solution-oriented approach. Our brand virtues of efficiency, clear communication and providing an excellent customer experience are at the core of every project. Can you afford to work with a firm that’s not “Powered by Partner-Grade?”