Christopher Columbus Landing Resort, a 140-acre complex on Puerto Rico’s northwest coast of Playuela, is stirring concern in the in community, with some fearing that the project will overtake an untouched beach. Proponents say the project would bring 700 jobs to the area. To read more, click here.
While the Zika virus still lingers, tourists seem less concerned about its reach. Last year, Costa Rica experienced a severe drop in honeymoon business because of the concerns surrounding the virus, but this year is experiencing a boom. Read more here.
According to Lodging Econometrics (LE), following New York City, Houston has the second largest pipeline in the country with 169 projects/18,373 rooms. With its pipeline continuing to grow, Houston is likely to top its previous peak of 171 total projects reached in 2008.
Of all markets, Houston has the most projects scheduled to start construction in the next 12 months with 91 projects/9,792 rooms, 54 percent of its total pipeline. Houston also has the most projects in early planning with 37 projects/3,748 rooms. The remaining 41 projects/4,833 rooms are presently Under Construction.
With the economic impact of low oil prices, Iranian oil coming online and a decline in demand from China, drilling for oil in Texas has plummeted. As a result, Houston’s economy has been rocked. Some economic improvement is expected in 2017 as a bottoming is thought to have occurred. Consequently, in the last 2 years, occupancy has declined from 71.7 percent to a reported 62.3 percent. ADR fell 3.6 percent in 2016. RevPar declined both years and registered a whooping 12.4 percent year-over-year decline in 2016. New supply growth rose 5.7%. Demand growth fell 3.9 percent while supply growth grew 5.7 percent. Houston has the largest demand/supply imbalance of all the top 25 markets. With a steady stream of new supply forecasted to come online, operating metrics are expected to continue their fall for the next two years.
Analysts at Lodging Econometrics (LE) report that the New York City Hotel Construction Pipeline is at 192 projects/30,541 rooms, and continues to be the largest pipeline in the U.S. There are 101 projects/17,711 rooms under construction, the highest in the country, 63 projects/9,019 rooms scheduled to start construction in the next 12 months while early planning stands at 28 projects/3,811 rooms. New York City has had the largest pipeline of any market in the country for 21 consecutive quarters.
Pipeline growth trends are likely to remain strong as NYC has consistently been in the top 3 markets for new projects announcements into the pipeline and annualized construction starts for the last decade.
In the last two years, Expedia has gained close to 31 percent in revenue on Wall Street, and Priceline gained 54 percent. Meanwhile, Marriott gained 7.5 percent and InterContinental lost 2 percent. Why? To learn more about this shift, click here.
Lodging Econometrics (LE) reports at that at year-end 2016 the five markets with the largest hotel construction pipelines by project count are: New York with 192 projects/30,541 rooms; Houston with 169 projects/18,373 rooms; Dallas with 140 projects/17,291 rooms; Nashville with 121 projects/14,873 rooms; and Los Angeles with 111 projects/18,723 rooms.
Since the fourth quarter of 2011, New York has continuously had the highest project count of any market in the Pipeline while Houston has had the second largest for the last thirteen quarters.
Future supply growth should be strong in these five markets for the next few years, particularly New York, Houston, and Dallas which have been consistently amongst the Top 5 Markets with the largest number of new project announcements into the pipeline.