Occupancy is calculated by dividing

Occupancy is calculated by dividing the room night demand by the supply. During the historical period, supply increased at rates ranging from 0.7% in 1982 to 6.0% in 1974. Demand declined each year from 1980 until 1983 and also in 1974, but increased in all other years. In 1979, demand growth peaked at 5.3%. Changes in supply and demand had a varied impact on occupancy. In addition to declining when demand fell, occupancy also dropped when the increase in demand was smaller than the increase in supply.Also, the data presented in Exhibit 2-4 can be related to historical economic trends. The early 1970s marked the beginning of a hotel building boom reminiscent of the 1920s. Many factors contributed to this expansion, but the two main elements were readily available financing and aggressive chains that were eager to sell franchises.There will be fewer unencumbered turnaround assets offering high returns because many assets have already been repositioned and are stabilized. There will be limited additions to supply in the foreseeable future.