Hotel Room Supply Numbers Forecast to Peak in 2018 – NMP
Industry News

Hotel Room Supply Numbers Forecast to Peak in 2018

Feb 21, 2018
The supply of new hotel rooms entering the U.S. lodging markets will peak this year, according to new data from CBRE Hotels’ Americas Research

The supply of new hotel rooms entering the U.S. lodging markets will peak this year, according to new data from CBRE Hotels’ Americas Research, which is forecasting the net addition of approximately 101,000 rooms, a two percent over the 2017 average annual daily supply. This new wave of hotel rooms is the largest to enter the market since the 130,000 rooms that came on line in 2009.
 
In an analysis of 60 major markets, CBRE is forecasting a greater than two percent supply increase in 42 markets, adding that occupancy levels in these markets are projected to decline on average by 0.6 percent, while the average daily rate (ADR) is expected to increase by 2.4 percent. Both measures are below the average changes estimated for the remaining 18 markets. CBRE is also predicting hotels in the markets that will see a lower than two percent supply change will also experience increases in both occupancy (0.2 percent) and ADR (3.4 percent).
 
CBRE is also forecasting a national average occupancy of 65.8 percent for 2018, down slightly from the 65.9 percent achieved in 2017, while occupancy levels are forecast to remain flat in 2019 and decline in 2020. Concurrently, annual ADR change is forecast to slow down after 2018.
 
“The national changes in supply are less than what we observed during the latter year cycles of the 1980s, 1990s and 2000s, so the national occupancy levels are still at all-time peaks,” said R. Mark Woodworth, senior managing director of CBRE Hotels’ Americas Research. “Beyond 2018, we are expecting the pace of new hotel construction to hover around the 2 percent mark, but the number of net new rooms per year will taper. This is the natural progression after years of slight occupancy declines and decelerating ADR.”
 
About the author
Phil Hall
Link copied
Published
Feb 21, 2018
Get the NMP Daily
People On The Move
Jonathan Warrick Takes Helm At dv01 As Founder Perry Rahbar Moves To Fitch Advisory Role

The structured-finance data provider’s first employee succeeds Rahbar following more than a decade with the company

Jonathan Warrick has been named head of dv01, succeeding founder Perry Rahbar in the top leadership role at the structured-finance data and analytics provider.Warrick, dv01’s first employee, most recently served as chief operating officer. Rahbar is transitioning to a strate...

Continue reading
Wholesale
UWM’s $2.05 Billion Capital Reset Doesn’t Erase Its Leverage

Fitch downgraded the wholesale giant after leverage reached 6.1x, saying the preferred investment changes UWM’s funding structure but does not immediately reduce its debt burden

United Wholesale Mortgage’s $2.05 billion capital reset may strengthen its liquidity and replace secured borrowings, but Fitch Ratings does not believe the transaction immediately reduces the wholesale lender’s debt burden.Fitch downgraded the long-term issuer default rating...

Continue reading
Renew your NMLS License — for free.

Enjoy access to a free NMLS renewal class when you attend an in-person event.

Find an event
More from
Industry News
The Fed Held. The Mortgage Market Got A Warning.

Three policymakers favored an immediate hike, while Warsh welcomed higher bond yields and offered no clear path toward mortgage-rate relief

Industry News
Jul 30, 2026
New Study Finds UWM's 'All-In' Triggered Industrywide Pricing Spillovers

Research shows wholesale competitors responded to the 2021 Rocket ban by lowering mortgage rates,

Industry News
Jul 15, 2026
First Major Housing Reform In Decades Becomes Law Without Trump's Signature

Bipartisan ROAD to Housing Act advances supply, construction, and mortgage reforms despite White House protest

Industry News
Jul 10, 2026
Mortgage Star Conference Honors Women Shaping The Future Of Mortgage Leadership

MWLC honors leaders driving innovation, mentorship, and growth across the mortgage industry

Industry News
Jul 09, 2026
June Jobs Report Improves Mortgage Rate Outlook

Slower hiring strengthens bonds and eases concerns over additional Fed tightening

Industry News
Jul 02, 2026
NEXA Founder Mike Kortas Launches evoLend To Help Originators Retain Borrowers

New Fannie Mae-, Freddie Mac- and Ginnie Mae-approved mortgage servicer aims to keep originators connected to borrowers through servicing data, payoff visibility and retention tools

Industry News
Jul 02, 2026