The effect of new hotel supply on construction

National Report – According to the Hotel Development Cost Survey 2013/14 released by HVS, the development of full-service hotel properties could see a resurgence with the assistance of public financial support. Continued economic recovery in the U.S. has prompted the development of both full and select-service hotel projects with expected economic benefits to choice local areas.

Public subsidies are available specifically for less traditionally feasible full-service hotels, often taking advantage of existing or proposed convention centers with the goal of influencing greater development in the future.

Additionally, conversions where more rooms are added are often glossed over, and the net change in the number of hotel rooms for a given area is important for evaluating the impact of construction on new supply.

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