A recent report by Lodging Econometrics (LE) found that the number of projects in the U.S. hotel construction pipeline is up 7 percent year-over-year (YOY), standing at 4,973 projects with a total of 598,371 rooms. The number of projects under construction is 1,520 with 198,710 rooms, up 10 percent YOY—the highest counts recorded this cycle.
The number of projects scheduled to start construction in the next 12 months is up 5 percent YOY (2,312 projects/264,924 rooms) and projects in early planning stages are up 8 percent YOY (1,141 projects/134,737 rooms). However, the number of planned projects is slightly down from last quarter which, so far, is the peak level this cycle.
According to LE, the rate of growth may be low for the economy, but it’s running on all cylinders. The total pipeline growth rate is also stalling, the LE report says.