January’s Hotel Construction Up 6.8 Percent Over Last Year

Construction

HENDERSONVILLE, Tenn. — As of the end of January 2020, STR‘s data showed 1,615 projects accounting for 208,807 rooms in the U.S. hotel construction pipeline—a 6.8 percent year-over-year increase in the number of rooms in the final phase of the development pipeline.

“The industry is now up to more than 208,000 rooms in construction, which is as close as the country has come to the prior end-of-month peak of 211,700 in December 2007,” said Bobby Bowers, STR’s senior vice president of operations. “When looking at year-over-year growth and percentage of existing supply, the pipeline has remained pretty steady on a national level. However, the story remains the same with a disproportionate amount of activity in certain markets and the limited-service sectors.”

In absolute values, a majority of the country’s construction activity continues to be focused in the select-service segments, according to STR data, with upscale hotels leading the construction pipeline with 64,945 rooms and upper-midscale coming in a close second with 63,528 rooms as of January 2020.

Among major markets, six reported more than 5,000 rooms under construction between new builds and expansion projects at the end of January 2020. New York led with 13,108 rooms, which represented 10.3 percent of the market’s existing supply, followed by Las Vegas with 9,076 rooms (5.5 percent of existing supply); Orlando with 7,949 rooms (6.1 percent);  Los Angeles/Long Beach with 6,430 rooms (6.1 percent); Nashville with 6,287 rooms (13.1 percent); and Dallas with 5,975 rooms (6.4 percent)

 

 


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