CBRE: Hotel sector ends 2017 with strong demand growth

U.S. hotel demand grew 3.7 percent nationally during the fourth quarter 2017, up from the 2.4 percent rate during the third quarter 2017, according to CBRE’s fourth quarter 2017 U.S. hotel figures.

Six of the top-10 demand growth markets with occupancy change were in Texas or Florida, as continued relief and disruption from 2017 hurricanes contributed to increased demand. Hurricane Harvey led to Houston having the largest demand increase (31.1 percent). High gains also occurred in the Hurricane Irma–affected markets of West Palm Beach (12 percent), Miami (9.1 percent) and Orlando (8.1 percent).

Demand growth outpaced supply growth and occupancy increased in all top-10 demand growth markets.

National occupancy rose by 1.8 percent year-over-year, resulting in record-high occupancies in 2017.

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