Yahoo Finance reports that some contractors, particularly in hotel construction, are adopting “modular construction,” something the article describes as similar to building with Legos.
According to the article, in modular construction, pieces of buildings are built section-by-section in a factory and are shipped to a site and stacked “practically overnight.” hotel developers are pushing the high-speed, low-cost construction process so fast that the article reports suppliers “can’t keep up and fill orders.”
Marriott, for example, opened its first modular hotel three years ago, and according to the article, executives want at least 40 percent of its hotels built like this in the future.
The company's latest project, AC Hotel New York NoMad, is set to be the world’s tallest modular hotel at 26 floors. According to the article, developers secured a $65 million construction loan for the project—but the cost would have risen to $100.8 million using traditional construction methods.
