NYC Hotel Glut Leading to Slowdown in Room-Rate Increases

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The city that never sleeps may have too many hotel rooms.

A surge in New York hotel construction, leading to a 21 percent increase in the city’s room count in the past five years, is tamping down nightly rates. While good for travelers trying to contain costs, that’s limiting room-revenue growth in the area for companies including Hilton Worldwide Holdings Inc.Bloomberg Terminal and Hyatt Hotels Corp.Bloomberg Terminal, executives said this week.