PORTSMOUTH, N.H. — In the most recent Lodging Econometrics (LE) Construction Pipeline Trend report on Los Angeles, LE reported that Los Angeles has a total of 168 hotel projects totaling 28,501 rooms in its construction pipeline, making the market’s hotel pipeline the largest in the United States.
Of this total, 46 projects/7,064 rooms are presently under construction, 56 projects/9,199 rooms are scheduled to start construction in the next 12 months, and 66 projects/ 12,238 rooms are in the early planning stage. If all of the projects in the pipeline come to fruition, the city’s guestroom supply will increase by 27.1 percent.
The three market tracts with the largest hotel construction pipelines in LA are the Los Angeles Central Business District with 47 projects/11,490 rooms; Los Angeles East with 32 projects/4,418 rooms; and Los Angeles North with 29 projects/3,037 rooms. These three market tracts combined account for 67 percent of the rooms in the market’s total construction pipeline.
The market tracts with the most projects presently under construction are Los Angeles North with 12 projects/1,153 rooms; Los Angeles Central Business District with 10 projects/2,208 rooms; and Los Angeles East with eight projects/1,333 rooms.
LE’s forecast for new hotel openings predicts that in 2020, Los Angeles will have a growth rate of 2.5 percent with 19 new hotels/2,589 rooms opening. In 2021, Los Angeles is forecast to jump to a 4.4 percent growth rate with 33 new hotels/4,784 rooms expected to open.