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Report: Supply will top demand in 2017

Lodging Econometrics reports that in 2016, 842 hotels/98,990 rooms opened in the United States, the most since 2009 and up from the 736 hotels/82,094 rooms reported in 2015.

According to industrywide operating metrics, supply growth was a reported 1.6% in 2016, slightly below demand growth of 1.7%, meaning that demand has exceeded supply growth for the seventh consecutive year.

LE forecasts that new hotel openings will jump to 1,111 hotels/120,372 rooms in 2017. That should equate to a 2% supply increase in 2017. Unless there is some reversal in declining demand trends, aggregate supply growth in 2017 will exceed demand for the first time since 2010.

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