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Unearthing hotel growth hot spots: How supply and demand reveal the best markets for development

Although occupancy increases are generally related to demand growth, rate gains are harder to achieve
CoStar Analytics
August 12, 2025 | 4:19 P.M.

Before embarking on a hotel development project, it is paramount to understand historical market performance by analyzing hotel supply and demand. Such analysis can indicate whether supply is shrinking or demand is rising, revealing when and where it’s best to build.

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