Worried About Oversupply? Don’t Panic.

    Since the hospitality industry has been enjoying a period of success, many hoteliers are seemingly waiting for the other shoe to drop and the downturn to begin. While another downcycle could occur as a result of overbuilding, there are a few reasons why oversupply might not be as disastrous as some might predict. Supply growth is not likely to peak until 2018 at 2.5 percent. In the next two years, supply growth is expected to slightly exceed demand growth in the U.S. hotel market, but with occupancies running above the long-run average, the supply increase should bring balance to the hotel market in the next few years, rather than push it off-kilter. To read more, click here.

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