Finance & DevelopmentDevelopmentSTR: U.S. Hotel Construction Declines but Planning Activity is Up

STR: U.S. Hotel Construction Declines but Planning Activity is Up

HENDERSONVILLE, Tennessee—While a steady hotel construction decline continues nationally, volume in New York City and Nashville represents a significant percentage of those markets’ existing supply. Additionally, planning activity continues to rise nationally with markets like Miami, Phoenix, and San Francisco showing increased interest from developers, according to STR.

U.S. Hotel Construction Pipeline
March 2022 (percentage change in comparison with March 2021):
In Construction: 154,881 rooms (down 15.7 percent)
Final Planning: 177,756 rooms (down 16.8 percent)
Planning: 297,046 rooms (up 26.3 percent)

New York City leads the major markets in rooms in construction as a percentage of existing supply.

  1. New York (11.5 percent, 14,288 rooms)
  2. Nashville (8.0 percent, 4,394 rooms)
  3. Detroit (5.7 percent, 2,637 rooms)
  4. Miami (5.4 percent, 3,450 rooms)

“New York City has led the development pipeline for quite some time,” said Carter Wilson, STR’s senior vice president of consulting. “Most of these rooms have been in development since before or right at the beginning of the pandemic, and the hope is their opening will be met with solid levels of recovery in international arrivals, groups, and business travelers in addition to continued high levels of domestic leisure travelers.”

When looking at the planning phase of the pipeline, Miami shows the highest number of rooms as a percentage of existing supply.

  1. Miami (15.6 percent, 9,986 rooms)
  2. Nashville (14.3 percent, 7,877 rooms)
  3. Phoenix (10.2 percent, 7,134 rooms)
  4. San Francisco/San Mateo (8.9 percent, 4,842 rooms)

“It is no surprise that Miami and Phoenix are showing increased rooms in the planning phase, as both markets have been outperformers throughout the pandemic,” Wilson said. “On the other hand, there’s San Francisco, which has consistently been near the bottom when looking at pandemic performance. The market’s strong positioning in the pipeline seems to imply developer confidence in the return of business and group demand. San Francisco’s group demand did, in fact, make a brief yet stellar return recently, helped by the Game Developers Conference and NCAA Basketball. That reinforces the substantial impact that segment has on the market.”

RELATED ARTICLES

Hilton Announces Plans to Debut Spark by Hilton in Puerto Rico

PONCE, Puerto Rico, and MIAMI, Florida—Hilton announced the signing of Spark by Hilton Ponce, marking the upcoming debut of the brand in the Caribbean...

Wyndham Announces Partnership With Cygnett

DELHI—Wyndham Hotels & Resorts announced a new strategic alliance with Cygnett Hotels & Resorts that will not only introduce its La Quinta by Wyndham...

New Pyramid Global Hospitality COO Continues Focus on Big Data to Benefit Owners

Pyramid Global Hospitality Chief Operating Officer Eric Habermann retired in April following seven years with the company and a nearly 40-year career in hospitality....

Grand Hyatt Kauai Resort & Spa Launches Scholarship Program

Grand Hyatt Kauai Resort & Spa, a 605-room resort, announced the launch of a scholarship program to support the continued education of its colleagues...

Hilton Surpasses 500 Hotels in Florida

MCLEAN, Virginia, and MIAMI, Florida—Hilton announced a major milestone as the company surpassed 500 open hotels across Florida. This growth was fueled in part...

Hunter Hotel Advisors Brokers Sale of Residence Inn Detroit Novi

ATLANTA, Georgia—Hunter Hotel Advisors (Hunter) announced the successful sale of the 107-key Residence Inn Detroit Novi. Spark GHC purchased the property from an institutional...