Justin Knight, president and CEO of Apple Hospitality REIT, Inc. (NYSE: APLE), participated in a video interview at Nareit’s REITweek: 2018 Investor Conference in New York.
Knight observed that leading into 2018, leisure traveler demand had significantly outpaced business traveler demand. As 2018 began, leisure continued to be reasonably strong, but business transient demand began to pick up, he noted.
The pickup in business demand will benefit Apple Hospitality for the remainder of this year, Knight said.
Meanwhile, after a subdued transaction market for the past several years, significantly greater inventory has come to market since the start of the year, Knight said. The uptick has largely been fueled by the availability of financing and renewed confidence in the sector, he noted.
Knight also observed that rising construction costs have been reflected in a decline in new construction starts, “which we think bodes well for the future.”