Slow Down Ahead for New Hotel Development

Bill Wilhelm: “I have seen a lot more conversation about the revitalization of properties and projects where you can get in and get out sooner.”

LOS ANGELES—At ALIS this year, it was clear that the hotel industry was either approaching or had hit its peak, and the story was no different for new development. In an exclusive interview with Bill Wilhelm, president of R.D. Olson Construction, GlobeSt.com learned that new hotel development has also plateaued. While groundbreakings have ensured that there will still be new hotel delivery through early 2017, Wilhelm said that the pipeline is drying up and renovation projects are the new trend.

“Ground up development is still active, but I have seen a lot more conversation about the revitalization of properties and projects where you can get in and get out sooner,” Wilhelm tells GlobeSt.com. “Right now, the hospitality industry has plateaued on new ground-up construction. We are still going to see another 18 months for ground-up starts because of what is already in the pipeline, but developers are starting to slow down and look for the next angle. I am starting to see more renovation and repositioning come to light.”