Hotel Occupancies Stand Strong Despite Airbnb Competition And New Construction

Though developers keep opening new hotels, it isn’t hurting occupancy rates — hotel occupancies stood at 65.5% over the course of 2016.

That is according to data from STR, which said 2016 experienced the highest occupancy rate ever recorded, National Real Estate Investor reports. Despite increased competition from Airbnb and roughly 183,000 new hotel rooms under construction, hotel occupancy rates have continued to rise.

But that success isn’t expected to last forever. The report predicted occupancy rates will fall slightly this year and the next, with properties within downtown metros in the greatest danger of being overbuilt. [NREI]

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