CBRE: Hotel Sector Faces Mixed Outlook

The US lodging sector is set to reap the benefits of achieving its all-time high 65.4% occupancy record this year, but Airbnb and growing supply could cause problems in 2017.

That’s according to the latest outlook from CBRE Hotels’ Americas Research, which says new hotel supply entering the market is likely to hurt occupancy rates and highlights Airbnb as a growing threat, CoStar reports. But CBRE forecasts average daily rates to grow 3.3% next year.

Looking at the details more closely, CBRE expects ADR success to vary by location, saying Northern California, Washington, DC, and Tampa should grow the most with expected ADR gains exceeding 6% through 2017. [CoStar]

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