Skift Take
U.S. hotel companies are facing a shortage of construction workers just as they are building new brands and properties. The result: delayed projects and higher costs. The industry will have to get more aggressive to recruit workers if it plans to keep the momentum going on its expansion plans.
The hotel industry is experiencing one of the tightest construction labor markets in years, threatening to delay new builds and renovations at a time when major hospitality companies have planned the most robust pipelines in years.
Hotel companies big and small have reported that they are dealing with a severe shortage of qualified construction employees from the electricians and carpenters working on the ground to the managers tasked with keeping projects on schedule.
Research firm STR said the number of hotels in construction as of November has increased 3.9 percent over the same time last year. Meanwhile, the U.S. Bureau of Labor Statistics reports that there are about 380,000 unfilled construction jobs in all markets. Another 747,000 construction workers will be needed by 2026.
“While we see great momentum on new deals and the growth of our pipeline, we are seeing construction delays and cost increases that will have an impact on the timing of openings,” said Hyatt Hotels Chief Financial Officer Joan Bottarini during an earnings call Oct. 31.
The construction industry doesn’t seem optimistic that it will be able to reverse the trend.
In a survey of 2,000 construction firms released over the summer by Autodesk and the Associated General Contractors of America, 80 percent said they are having a hard time filling
