The hotel construction is beginning to show signs of healing, as active hotel building projects increase at the start of 2014.
Most of those projects were on hold since 2008 when the recession started. Back then, the construction companies couldn’t secure financing. Now some 2,925 hotels are being built in the U.S. since the year started, which accounts for a total of 357,769 rooms.
In other words, such volume marks a significant increase by 16.4% compared to January 2013.
David Kong, CEO of Best Western told CNBC that the construction was stalled because banks wouldn’t lend money as easily as during the pre-recession years. The banks slowly relaxed their requirements last year, Kong says. Now Best Western expects to add at least 130 new properties in 2014, and accounts 45% of the company’s growth to new construction.
Something else, Kong says that now customers are more price conscious, and are looking for the better quality their money can buy.
Read the full story at CNBC.