The lack of low- and mid-range hotels currently in development speaks to build outs in recent years and the current promise of profit from high-end properties.
U.S. hotel supply has been nearly unchanged in the past year, and the development pipeline has actually shrunk 9% from a year earlier, according to Smith Travel Research (STR).
Few hotel projects outside of the luxury and upper-upscale sectors appear to be getting financing, STR said.
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