The results of the ISHC CapEx study, an eight-month research project in which historical information on 302 hotels was analyzed, present hotel lenders with a unique opportunity to reduce their risk exposure.
In the ISHC research, average CapEx for all hotels was 5.
Comparisons with other hotel industry data bases hotel showed the ISHC CapEx research sample to be an accurate reflections of hotels constructed in the United States over the past 50 years.
The ISHC found that full-service hotels typically operate on a 25-year life cycle, at the end of which massive renovation and rehabilitation expenditures are necessary to maintain the facility's (and the operating hotel's) competitive status.
The CapEx for replacements reported by ISHC exclude repairs and maintenance (R&M), which in the ISHC study average 4.