PORTSMOUTH, N.H.—Lodging Econometrics reports that the Q1 2017 United States construction pipeline currently stands at 5,032 projects/602,034 rooms, up 13 percent by projects year-over-year (YOY). There are 1,511 projects/197,450 rooms under construction, up by 155 projects YOY or 11 percent. Projects scheduled to start in the next 12 months, at 2,414 projects/272,487 rooms, were up 367 projects, 18 percent. Projects in early planning at 1,107 projects/132,097 rooms were up by 39 projects or 4 percent.
This is the 21st consecutive quarter of growth, but the pipeline is still a distant 851 projects/183,513 rooms away from the Q2 2008 peak of 5,883 projects/785,547 rooms. This moderate pipeline growth can be attributed to the tightening of loan availability, the recent rise of interest rates with the expectation of more increases on the horizon, and a slowing economy near full employment.
