NEW YORK---March 23, 1998-Bear Stearns' lodging equity research team
reports that there are 16 markets in the U.S. where new room additions
equal or exceed 10% of existing supply:
|Fort Worth - Arlington, TX||136||16,395||35||3,536||25.7%||21.6%|
|Raleigh - Durham, NC||130||15,887||28||3,142||21.5%||19.8%|
|Greenville - Spartanburg, SC||100||10,218||23||1,673||23.0%||16.4%|
|Salt Lake City - Ogden, UT||134||16,270||19||1,845||14.2%||11.3%|
|Kansas City, MO-KS||153||20,960||21||2,202||13.7%||10.5%|
"Excess supply could become a problem in several U.S. markets." said Jason N. Ader, a senior managing director and senior lodging industry analyst with Bear, Stearns Co. Inc. "In the top-five markets for new room starts, supply growth ranges from 16.4% to 21.6%. Dallas especially continues to be a concern, and we foresee a tough operating environment in that market on the horizon."
Dallas tops the construction markets with 8,134 rooms under construction, followed by Atlanta (7,435 rooms), Phoenix (7,335 rooms), Orlando (6,824 rooms), and Chicago (5,059 rooms). Together, these five markets account for 19% of the total number of rooms under construction. By contrast, construction activity in eight major East and West Coast urban markets (Boston, New York, Philadelphia, Washington, Seattle, San Francisco, San Diego, and Los Angeles) totaled 16,987 rooms, or only 8% of all rooms under construction. Constraints and self-regulation appear to be at work in major urban markets on the East and West coasts, limiting new property development before these markets become overbuilt.
Bear, Stearns Co. Inc., a leading worldwide investment banking and securities trading and brokerage firm, is the major subsidiary of The Bear Stearns Companies Inc. (NYSE: BSC). With approximately $14.8 billion in total capital, Bear Stearns serves governments, corporations, institutions, and individuals worldwide. The company's business includes corporate finance and mergers and acquisitions, institutional equities and fixed income sales and trading, private client services, derivatives, asset management, correspondent clearing, securities lending, and custody services. Headquartered in New York City, the company has approximately 8,700 employees located in domestic offices in Atlanta, Boston, Chicago, Dallas, Los Angeles, and San Francisco; and an international presence in Beijing, Buenos Aires, Dublin, Geneva, Hong Kong, London, Lugano, Paris, Sao Paulo, Shanghai, Singapore, and Tokyo.