NEW YORK CITY—The amount spent on capital expenditures for theUS lodging industry is forecast to exceed the prior record levelspent in 2013, for a new record level of $6 billion, an increase of7%, according to a new report by Dr. Bjorn Hanson, clinicalprofessor at New York University's School of Professional StudiesPreston Robert Tisch Center for Hospitality and Tourism.

There were decreases of 40% in 2009 and an additional 18%decline in 2010 in response to decreasing occupancy, ADR, RevPAR,and profits in 2009, but expenditures have increased every yearsince 2010, according to Hanson, who before joining the NYU facultyheld the position of global industry leader, hospitality andleisure, at Pricewaterhouse Coopers LLP.

The expenditures in 2014 reflect deferred items from 2009 to2012 and meeting new brand standards, ranging from new or enhancedin-room equipment to redesigned lobbies. Performance hasimproved: occupancy will return to close to 2007 levels,exceeding 63%, and ADR will increase the most since 2007,approximately 6.5%.