Which US Hotel Markets Are On the Bubble?

May 3, 2017

As the hotel industry continues on the path toward a downturn, it's time to begin looking at warning signs for which markets are poised to experience a large drop. By Jack Corgel, Managing Director, CBRE Hotels' Americas Research At a recent gathering, I was involved in a group conversation with hotel property investors who agreed that they have been "choking on the numbers" in certain U.S. hotel markets. Stated differently, their spreadsheet models explode once either acquisition prices or development costs are entered to evaluate hotel opportunities, especially in red-hot markets. They asked, "Should we pay such high p...