1. Compounding costs
The costs of doing nearly everything will compound during the next five years, NYU’s Hanson said. Construction costs, for example, might be low now, but they’ll begin to tick upward as more product begins churning through the pipeline.
As industry fundamentals pace upward along with broader macroeconomic trends, so too will costs of capital, he added.
Other costs that will see significant increases during the coming years, according to Hanson: utilities; payroll; taxes; social media; and technology.
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