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Current Marketplace – This industry is driven by supply and demand. When there is more demand than product, room prices soar, profitability skyrockets and development follows. Overbuilding is usually the end result. Portland is an example of this dynamic. Upper to median priced hotels were running staggering occupancies, so Westin, Marriott and numerous other smaller players got excited about the numbers and arguably overbuilt Portland with sizable new properties. This has negatively shifted supply and demand. Rates dropped from their previous highs, profits did not meet projections and the hotels shared a relatively finite pot with lower revenues and decreased profitability.
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PO Box 1037 - Cannon Beach, Oregon 97110
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