PORTSMOUTH, NH—According to a recent report by Lodging Econometrics (LE), the U.S. construction pipeline stands at 5,011 projects/608,837 rooms, up 4 percent by projects and rooms year over year (YOY).
Currently, the number of projects and rooms under construction are up 8 percent (1,592 projects) and 7 percent (208,523 rooms) YOY the highest counts recorded this cycle. Projects scheduled to start construction in the next 12 months are at 2,198 projects/251,259 rooms, down 1 percent YOY. Projects in early planning are at 1,221 projects/149,055 rooms. While these projects are up 10 percent YOY, the properties are smaller, resulting in lower room-counts.
The pipeline continues to grow at a moderate, upward pace and has established a new peak for this cycle. The previous cycle peak reached 5,882 projects/785,547 rooms in Q208. Current project counts are 15 percent below that level while rooms are 22.5 percent behind. Any acceleration in the pipeline from its moderate growth rate is likely dependent on the tax plan and other economic measures being discussed in Congress.