Hospitality forecast• 2012-14 is a time of significant hotel renovation, with more than

400,000 new or renovated room openings in the U.S. in this current period. That accounts for about 25% of all hotel rooms in the U.S.

• Renovation investment has been trending upward for 12 quarters

• Hotel industry’s economy is strongest in the commercial sector

• New project announcements are on a steady pace to outnumber openings soon

Source: Lodging Econometrics

Hotel projects and total rooms in pipeline in 2013

Under Construction

In Planning Total Pipeline

Projects Rooms Projects Rooms Projects RoomsAmericas 1,005 141.5k 2,665 341.3k 3,670 482.8k

EMEA 726 156.4k 526 92.9k 1,252 249.3kAsia Pacific

1,715 398.6k 641 160.8k 2,356 559.4k

Global 3,446 696.7k 3,832 549.9k 7,278 1291.6k

Source: Lodging Econometrics

The top 5 markets in the Americas for pipeline of hotel projects in 2013

Number of Projects

Number of rooms

New York 133 23,756Washington DC 89 14,765

Los Angeles 43 8,432Rio de Janeiro, Brazil 27 6,813

Belo Horizonte, Brazil 30 5,607

Source: Lodging Econometrics

New hotel room openingsAmericas Global

2012 64k 260k

2013 78k 274k

2014 105k 317k

2015 209k 678k

Source: Lodging Econometrics

United States: New hotels

and room openingsHotels Rooms

2011 346 37,1932012 410 44,4712013 501 55,3082014 602 68,088

Source: Lodging Econometrics

8 trends in hospitality designWith insight from designers:

• Michael Suomi of Stonehill & Taylor• Patricia Rotondo of VOA Associates• Angela Denney of FRCH Design Worldwide

Hospitality trend1. An emphasis on eco-friendliness and celebrating local craftsmanship

Hospitality trend2. Less pattern, more

texture, and pops of color

Hospitality trend3. Seamless technology

Hospitality trend4. A customized

experience

Hospitality trend5. Rarefied luxury

Hospitality trend6. Designer-driven

branding

Hospitality trend7. Multi-use spaces

Hospitality trend8. Bottom-line

driven materials

Thank you!

John Czarneckijczarnecki@contractdesign.com