CONVERSIONS
Change
MANAGEMENT
Lately , investors and developers that wouldn ’ t normally give a conversion candidate a second look are finding new appreciation for existing hotels . Chalk this change up to the proliferation of distressed properties and the difficulty forecasting costs and schedules for new construction , thanks to supply chain disruption , labor shortages and the soaring costs of building materials .
Major brand players have especially capitalized on the appetite for conversions over the last two years . Through the third quarter of 2021 , about a third of hotels added to Hilton ’ s portfolio were conversions . Wyndham saw double the number of U . S . conversions during the third quarter of 2021 compared with two years earlier . In a recent development update , Marriott International reported that 21 % of its openings last year — more than 18,000 rooms — were through conversions . Additionally , converted property rooms accounted for 27 % of Marriott ’ s new signings last year . “ Conversions are an important driver of rooms growth in any year , but they have been particularly meaningful during more disruptive times ,” the company noted .
60 hotelsmag . com May 2022