Finance & DevelopmentCoStar: U.S. Hotel Rooms Under Construction Increases for Seventh Consecutive Month

CoStar: U.S. Hotel Rooms Under Construction Increases for Seventh Consecutive Month

WASHINGTON—The volume of U.S. hotel rooms under construction increased year over year for a seventh consecutive month, according to CoStar’s latest September 2024 data.

U.S. Hotel Pipeline
September 2024
Percentage change from September 2023:
In construction: 157,253 rooms (up 7.0 percent)
Final planning: 268,190 rooms (up 10.4 percent)
Planning: 336,205 rooms (up 38.4 percent)

“Growth in rooms in construction has accelerated over the last seven months,” said Isaac Collazo, STR’s VP, analytics. “Despite higher interest rates throughout 2024, developer appetite has remained strong. With the recent rate cut in September, and with more on the way, investor sentiment remains positive, as evidenced by continued double-digit growth across the planning and final planning stages of the pipeline. Upscale and upper midscale continue to account for about 50 percent of all rooms in the final phase of the pipeline, while luxury and midscale showed the highest growth in rooms in construction, up 48.5 percent and 34.5 percent, respectively.”

Chain Scale Segments (Percentage of existing supply, in-construction room count):

  1. Luxury (5.6 percent, 8,508 rooms)
  2. Upper Upscale (2.6 percent, 18,156 rooms)
  3. Upscale (4.2 percent, 38,401 rooms)
  4. Upper Midscale (3.4 percent, 40,255 rooms)
  5. Midscale (2.9 percent, 14,902 rooms)
  6. Economy (1.2 percent, 7,653 rooms)

RELATED ARTICLES

BWH Hotels Announces Partnership With United Soccer League

PHOENIX, Arizona—BWH Hotels (BWH) and the United Soccer League (USL) announced a partnership that will provide travel benefits and enhanced experiences for USL clubs,...

Olympia Hospitality and Suburban Capital Announce New Management Partnership

PORTLAND, Maine—Olympia Hospitality and Virginia Beach-based hotel owner and developer Suburban Capital have teamed up on a new management partnership that brings four new...

Spring Break Strategies: How Real-Time Analytics Can Enhance the Guest Journey

Spring break is a critical time for the hospitality industry, bringing both excitement and operational challenges. As hotels are currently in the mix of...

Unifocus Introduces Inventory Tool to Help Hotels Automate Tracking and Management of Supplies

DALLAS, Texas—Unifocus announced Inventory, a new module designed to help hotels track reusable items, oversee supplies for preventive maintenance, and gain clear insight into...

This Week’s Comings & Goings

Maestro PMS announced that Warren Dehan will step down as president and transition immediately to an advisory role. While stepping back from daily operations,...

Keys to Savings: How to Streamline the Procurement Process

In today’s current economic environment, your procurement strategy could make or break your business. Having worked for a number of years in procurement with...