• At 8:30 AM ET, the initial weekly unemployment claims report will be released. The consensus is for 265 thousand initial claims, down from 266 thousand the previous week.
• Also at 8:30 AM, the Philly Fed manufacturing survey for August. The consensus is for a reading of 2.0, up from -2.9.
Something to think about on hotels from HotelNewsNow.com: California building boom leads to worries over supply
An extended period of strong hotel development has led to some supply concerns across California, but some markets are expected to remain strong as they enjoy favorable fundamentals and conditions that will keep supply growth to a minimum.
Flattening RevPAR growth “is coming at a time when a lot of product is coming online,” [Atlas President Alan Reay] said. “I won’t say we’re at the tipping point because some say we’re getting to where we should be because we didn’t do new construction for a few years.”
“There are pockets with a tremendous amount of supply coming in,” Reay said. “In downtown (Los Angeles) and north San Diego County, you definitely want to be cautious. If you’re not already out of the early planning stages, you need to be mindful of (new supply). And I think lenders will look at that more carefully.”