financeCoStar··1 min·For: Owner, GM, Investor, Ops
Aging US Hotel Stock Hits Performance and Renovations
The U.S. hotel industry is facing its oldest supply stock in decades due to prolonged periods of restrained new construction and high capital costs. This trend is forcing owners to choose between massive renovations or facing obsolescence as supply growth stays below 1%.
Key Takeaways
- 1Analyze your property's age to budget for inevitable PIPs or full-scale renovations as the national average property age hits a record high.
- 2Leverage high barrier-to-entry market positions as supply growth remains below the long-term average of 2%.
- 3Monitor acquisition opportunities for aging assets that require capital investment but offer prime location advantages.
Source: CoStar
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