CBRE: Lodging Sector to See Continued Growth in 2019

Nov 28, 2018

The U.S. lodging sector is on course for a tenth consecutive year of growth in 2019, according to a new forecast from CBRE Hotels Americas Research.

The new forecast anticipates a 66.2 percent increase in hotel occupancy next year, which would mark a fifth straight record level. Occupancy growth is primarily the result of a projected 2.1 percent increase in demand, which CBRE stated would offset an estimated net increase in supply of 1.9 percent for the year.

“It all starts with the demand for lodging accommodations,” said R. Mark Woodworth, Senior Managing Director of CBRE Hotels Americas Research. “Without leisure, corporate and group travelers on the road seeking hotel rooms, there is no need to worry about all the other performance metrics. From 1988 through 2017, the average annual gain in accommodated room nights in the U.S. was two percent. For 2018 and 2019, we believe demand growth will exceed this long-run average.”

CBRE added that it did not foresee any economic or lodging industry recessions through 2022, although it expected lodging industry growth to curtail after 2019 as a result of higher interest rates, equity market corrections, credit-market problems and some shrinkage in employment. However, the forecast was for a relatively short slowdown.

“The year 2021 seems far away for most industry participants, however, those with an ownership interest need to be planning their future investment strategies,” Woodworth stated. “In the meantime, the magnitude of profit growth may not be spectacular, but the probability for revenue growth is solid, and operating margins remain well above historical levels.”

About the author

Phil Hall

Link copied

Published

Nov 28, 2018

Industry News

Newfi And Addy AI Announce Partnership

Newfi and Addy AI today announced a collaboration focused on the continued evolution of artificial intelligence in mortgage lending

Newfi and Addy AI today announced a collaboration focused on the continued evolution of artificial intelligence in mortgage lending.Newfi has built innovative lending products and a modern approach to the mortgage market. As the industry evolves, the company continues to exp...

Analysis and Data

Smaller Down Payments Give Buyers More Room, But Rates Limit The Savings

The typical down payment fell 9% from a year ago, while shifting market conditions are giving originators different affordability conversations across the country

Homebuyers are putting less money down than they were a year ago, another sign that increased inventory and greater negotiating room are changing the purchase market.The typical down payment fell to $27,100 in the second quarter of 2026, the lowest second-quarter dollar amou...

Nov

Pasadena, CA

More from

Industry News

CHLA: More Freddie Mac MBS Buying Could Narrow Mortgage Spreads

Trade group estimates greater Freddie participation could compress spreads another 10 to 12 basis points as Fannie has taken the lead in GSE mortgage-bond buying

Industry News

Sep 23, 2026

Early Loan-Limit Race Splits Into Three Tiers

Lenders are now offering $845,000, $847,440, or $850,000 before FHFA sets the official 2027 limits

Industry News

Sep 23, 2026

Better, Garg Clash Over Claimed 46% Shareholder Support

Better disputes its former CEO’s preliminary consent count as the two sides trade accusations and an Oct. 2 target date approaches

C-Suite Strategies

Sep 23, 2026

Fannie Changes How Rent From A Former Home Counts

Fannie now prohibits leases for departing residences and permits market-analysis tools instead of Form 1007, creating a key documentation difference from Freddie Mac

Regulation and Compliance

Sep 22, 2026

MPF Expands Eligibility For Manufactured And Renovation Loans

The Mortgage Partnership Finance Program has expanded MPF Traditional eligibility for affordable loans, manufactured homes, renovations, and lender-funded assistance

Industry News

Sep 22, 2026