May 9, 2017
By Bob Coleman
Editor, C-Suite Wednesday
C-Suite Wednesday — Hotel Room Supply Now Exceeds Demand in Many U.S. Markets
One of the takeaways from last month’s Coleman 9th Annual Hospitality Financing Webinar is supply, due to the influx of many newly constructed hotel rooms, will outstrip demand in many markets — particularly the northeast, midwest and southwest
However, markets like Sacramento, Las Vegas, Orlando, and Indianapolis stand out for their lack of significant construction activity on the horizon.
Here is the hotel heat map from Ten-X’s National Hospitality Managing Director Anthony Falor from his presentation to small business hospitality lenders.
Ten-X says. . . . .
Our forward view of fundamentals on scale of 1/dark green (very strong) to 6/dark red (very weak).
Individual box size based on hotel market room inventory.
The strong West markets have some of the best forecasts in the US, while the Bay Area outlook is poor primarily due to an imposing supply pipeline.
Outlooks in the Northeast, Southwest, and Midwest are poor nearly across-the-board.
Mounting supply additions are hurting the outlook for nearly all red markets, while the strong dollar and stiff competition from Airbnb is damaging trophy markets.