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With Hotel Overbuilding, You Can Cut Back on Costs with Our Products.

With Hotel Overbuilding, You Can Cut Back on Costs with Our Products.

More travelers, but even more empty rooms. That’s the dilemma facing many hotels around the country, even in some of the hottest markets. People are staying more nights than ever before, yet all the hotel overbuilding of recent years and today has flooded the market.

In typically slow markets like Oklahoma, overbuilding has brought overall occupancy and revenue per room down significantly. Meanwhile, in hotbeds like Austin, Nashville, and Miami, new hotel construction has managed to outpace these cities’ robust demand.

National Real Estate Investor examined the issue and estimates a record 1.2 billion guest nights in 2017 against 1.8 billion available rooms.

Effects of Hotel Overbuilding

Developers have targeted specific metro areas more than others. In the perennially healthy New York market, new construction has been largely matched by demand. Consumers get some relief on price and availability, while hoteliers in the Big Apple continue to see strong occupancy.

However, in many hot tourist markets like Miami and in convention-friendly hubs like Austin and Nashville, the overbuilt, saturated market spells lower revenue per room for the foreseeable future.

Elsewhere, hotels have overbuilt in remote areas like Wyoming due to temporary demand related to drilling and fracking. Such areas may be drowning in surplus demand for years.

Facing the 2017 Hotel Market Outlook

Hoteliers fighting against surplus rooms in their market can look to control costs elsewhere. Our hospitality industry powered carts are a form of automation that accelerates housekeeping while reducing worker injury claims and boosting productivity.

To keep expenses down and improve guest satisfaction in a competitive market, consider hospitality industry powered carts for housekeeping and maintenance staff.