financeasianhospitality.com··1 min·For: Owner, Investor, GM
Acquisitions Trump Ground-Up Builds Amid Soaring Costs
With development costs surging to over $1 million per room for luxury assets, acquiring and repositioning existing resorts offers faster returns and lower capital risk. Investors can boost total guest spend by phasing investments into wellness, dining, and programming while evaluating independent operating models.
Key Takeaways
- 1U.S. hotel development costs average $409,000 per room for full-service and top $1.05M for luxury properties.
- 2Acquiring established assets bypasses permitting delays and inherits vital local infrastructure and community ties.
- 3Phased repositioning focused on wellness and experiences allows owners to fund capital improvements from early operational gains.
Source: asianhospitality.com
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