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PHOENIX—For any members of the hotel industry waiting for the other shoe to drop, JP Ford, SVP and director of business development at Lodging Econometrics, had good news to impart here last week during this year's Lodging Conference.
While new supply is on the rise, he conceded, growth is far from a level where macro oversupply concerns are warranted. “The peak in construction occurred in the second quarter of 2008 when there were 5,883 projects, and 785,000 rooms. We're not even close to that.
For 2014, he continued, “We're forecasting 1.3% supply growth, which is pretty benign and easy to absorb.”
Still, Ford did sound one note of caution. “When you're looking at new supply, if you're a local owner—and all real estate is local—you need to look at your own backyard and around the corner. Know what's in the pipeline that will impact you both near- and long-term.”
To see Ford's Lodging Conference presentation and learn about his 2014 to 2016 forecast, click the button below.
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