Most U.S. Markets Will See Slow Supply Growth in 2015, Says PKF
In terms of hotels rooms, net supply growth in 2015 will remain below 2 percent in 42 of the top U.S. markets, writes PKF Hospitality Research director of information services Robert Mandelbaum on HotelManagement.net. Exceptions include Austin, Texas; Pittsburgh, and New York City, where supply growth of 6.1 percent, 5.3 percent and 5.1 percent, respectively, are expected. In New York City and Pittsburgh, robust demand growth is expected to counteract some of the effect of the increased supply. Occupancy is forecasted to decline in both Austin and New York, but to remain above 70 percent; PKF expects occupancy to remain flat in Pittsburgh. Overall, said Mandelbaum, strong rate growth should drive revenue per available room increases in most markets. An increase in average daily rate is forecast for 53 of the top 55 markets covered by PKF-HR.