NEW YORK, June 5 (Reuters) - Hotel executives are

surveying vacant office and residential buildings in prime

locations from the U.S. to China to drive supply growth as

financing challenges for new construction hinder efforts to

maximize buoyant demand.

Hotel supply growth in 2024 is hovering under 1% compared to

30-year averages of 2.5%, but with commercial assets sitting

empty around the world, hotel operators are scouting unique

conversion opportunities.

"Constriction in the debt markets for new construction, that

is causing us all to duke it out for every conversion that

presents itself," Marriott ( MAR ) CEO Anthony Capuano said at the NYU

International Hospitality Industry Investment Conference earlier

this week.

Marriott ( MAR ), known for its Ritz-Carlton and Sheraton

brands, this week announced Project Mid-T in North America, its

latest effort to convert existing hotels or commercial assets

such as offices into mid-scale hotels at lower costs.

The industry has solid demand growth compared to

historically low hotel supply, according to Hilton Worldwide's ( HLT )

CEO Christopher Nassetta.

"We have to look at different ways to repurpose existing

assets," said UK-based IHG Hotels & Resorts CEO Elie Maalouf.

Maalouf warned office-to-hotel conversions aren't easy and

may be expensive but with strong travel demand the economics

makes sense.

"I think a lot of office buildings don't have a future in

hotels because of the floor plates and infrastructure but some

will."

Hyatt Hotels ( H ) CEO Mark Hoplamazian said some office

buildings in Europe are becoming B, C or D-rate office buildings

but they are in prime locations.

A similar trend is playing out in China but with residential

buildings as the country grapples with a property crisis.

"China has an over-building problem, not really in the hotel

space, but in the residential and other commercial spaces,"

Hilton Nassetta said. "They are repurposing them."

Close to 50% of Hilton's Hampton hotel expansion in China

are conversions from preexisting real estate, he said.

(Reporting by Doyinsola Oladipo in New York; Editing by Sriraj

Kalluvila)