Publications

Research - SEPTEMBER 7, 2016

To read this full article you need to be subscribed to Newsline.

Sign in Start Your Free Trial Now View Purchase Options

Hotel markets coming into balance as demand and supply growth rates converge

by Andrea Waitrovich

The hotel market had a sluggish start during the first half of the year, according to CBRE Hotels’ Americas Research.

The magnitude of change in the major industry indicators is not pleasing U.S. hotel owners and operators.  New development activity continues to accelerate, while growth in average daily room rates (ADR) has decelerated.

“On the one hand, we are comforted by the continual growth in accommodated demand.  After all, if people stop traveling, nothing else really matters,” said R. Mark Woodworth, senior managing director of CBRE Hotels’ Americas Research. “On the other hand, there continues to be a disconnect between the record occupancy levels and the inability of hoteliers to increase room rates.”

According to STR, U.S. lodging demand increased by 1.6 percent during the first half of 2016 compared to the first half of 2015.  At the same time, hotel rooms supply rose by just 1.5 percent,

Glossary, videos, podcasts, research in the Resource Center

Forgot your username or password?

Close your account?

Your account will be closed and all data will be permanently deleted and cannot be recovered. Are you sure?

We respect your privacy! Please give consent for processing data as described in our Privacy Policy