After a recent surge in leisure travel, New Jersey construction has been focusing on building more hotels in the cities of Teaneck, Rutherford, Wayne, Paramus, Secaucus, and other northern towns. During this profitable and busy time, insure your construction business with a NJ Builders Risk Insurance policy.
Fourteen hotel projects totaling 1,924 rooms are currently underway in New Jersey, according to STR Inc., a hospitality research company. Further, 44 more hotels are in the early stages of planning, as well. This is a great sign as it proves the economy is improving after a two year recession decreased travel to local areas drastically. STR also reports that hotel room rates and revenues are at all-time highs along with increased average occupancy rate at 72%- up from its low 55% during the 2007-2009 recession.
This increase is not only benefiting the travel and hospitality industries. Banks and construction companies are seeing lucrative increases, as well. With more willingness to fund hotel operations, construction companies are in high demand to keep up.
A contributing factor to the extensive growth is said to be a trickle-down effect from surrounding metropolitan areas such as New York. Although there is a lot of competition to keep prices low from Airbnb and other chains, the occupancy level is not being affected negatively. Additionally, the branches that are profiting the most are medium budget brands with minimal food and drink options like Holiday Inn Express, Hilton Garden Inn, Courtyard by Marriott, and Hampton Inn.
At Tri-State Insurance Agency, we specialize in serving niche markets and protecting construction businesses like yours. Safeguarding your assets with our commercial policies can protect you in this time of rapid growth. For more information, contact our knowledgeable expert s today at (888) 990-0526.