If you wonder where US hotels are spending their money these days in the highly competitive market, think amenities.
Hotels will spend a record $5.5 billion this year on flat-panel televisions and other amenities as they upgrade rooms and gyms to lure business travelers, said PricewaterhouseCoopers LLP in a study.
Hotel owners will increase spending 10% compared with last year as they replace beds, serve free breakfasts and install high-speed wireless Internet networks, PwC said.
Some of this is due to chain policies.
Hotel-management companies including Marriott International Inc., Hilton Hotels Corp. and Starwood Hotels & Resorts Worldwide Inc. have required the owners of their properties to invest in upgrades to help boost revenue.
US business travel will increase about 1 to 2 percent in 2007, in line with the growth rate a year earlier, according to the Travel Industry Association.
Hotels are estimated to raise their rates an average of 5.9% in 2007 even as occupancy will be unchanged from a year earlier, PwC said.
Report by David Wilkening
