Demand Can Keep Up With Record-Level Hotel Construction
New hotel construction is reaching record levels after six years of solid revenue per room (RevPAR) growth, and experts say demand is so strong it can match the coming jump in supply.
According to the consulting firm Lodging Econometrics, there are around 1.9 million hotel rooms coming down the global pipeline, marking the highest level of construction ever recorded and a 9% increase from a year before, National Real Estate Investor reports.
The US leads the world in hotel construction growth, the report says, and the new construction rate is 1.6% while there’s a 2% demand growth rate—putting to rest fears of overbuilding, even with the record construction levels, Peter Nichols, director of the hospitality group at Marcus & Millichap, tells NREI. [NREI]