...New Hotel Supply Accelerating: Lodging C-Corps and REITs generally cited increased developer interest in the hotel sector due to a combination of several factors. These include improved development feasibility driven by the continued recovery in average daily room rates (ADR) and greater bank appetite for construction lending, against the backdrop of the widely held view (Fitch Ratings included) that the U.S. lodging industry is in the middle innings of this recovery. We remain comfortable with our positive sector outlook, but acknowledge that excess supply is the key risk to our views, outside of an exogenous shock to the U.S. economy. Supply a Longer Term Concern: Fitch expects new supply to grow by 1.1% in 2014 -- well below the 1.9% historical average since 1988, as well as the 2.7% and 1.6% supply growth that corresponded with the prior two lodging cycle peaks in the early 1990s and early 2000s. Real ADRs below prior peak levels in most markets and typical one- to three-year development...
