Calgary hotel market too much supply not enough demand CBRE

The new hotels, for the most part, are found in the northeast near the airport, but the Marriott Residence Inn on 10 Avenue in the Beltline was also recently completed.Kwong believes it’s ill-advised to start a hotel construction project, especially in the northeast unless you can take advantage of potentially lower construction costs and if you’re looking at select properties that fill a niche.“I think there still is a need for some hotel rooms in Calgary.” CALGARY (660 NEWS) — An influx of hotel developments in Calgary has led to an oversupply in the market.A commercial real estate firm says there’s been a 15 to 18 per cent increase in the number of hotel rooms in Calgary in the last two to three years.As Greg Kwong, Regional Managing Director for CBRE Limited explains, many projects were started when the city was doing better economically.“Currently as demand is a little bit slow it’s a little bit tough right now,” said Kwong. “But with any hotel development, you’re not building just for the short term, you’re obviously looking to the long term.”Kwong says projects like the expansion of the BMO Centre on the Calgary Stampede grounds should still go ahead as the hotel market is expected to improve over time.“So in anticipation of that and a number of other, hopefully, better opportunities for attracting guests to Calgary, I think the hotel market is well-positioned.”WATCH: BMO Centre expansion underway read more

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