Hotel Revenue Glossary · Benchmarking

Supply and Demand Analysis

The process of evaluating the balance between available hotel rooms (supply) and guest demand in a market. Supply is measured by total room count and new pipeline developments. Demand is measured by room nights sold and growth trends across the market.

Why it matters: Markets where demand growth outpaces supply growth offer pricing power and occupancy gains. Markets where new supply is growing faster than demand will see rate pressure. Understanding this dynamic is essential for budget planning and investment decisions.

All glossary terms Market Track Occupancy RevPAR (Revenue Per Available Room)