The supply of hotel rooms in the Chattanooga market will jump by about 7.5 percent during the next year, which could spell trouble for hoteliers despite expectations for a busy summer tourism season.

At least 728 new hotel rooms under construction are to be added this year and next in the Chattanooga market, according to Smith Travel Research.

"That's a pretty stiff add," said Bobby Bowers, senior vice president of operations at Smith Travel Research. "If you just look at what will be added as a percentage of what's there now, that's a significant add that's going to be pumped into the supply."

That extra supply is coming on the heels of a marked decrease in demand so far this year. In the first three months of 2013, Chattanooga's occupancy rates dropped 10.4 percent lower than the first three months of 2012, according to Smith Travel Research.

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