STR: United States Opened More Hotels Than Any Country During COVID-19

Credit: RichLegg
Credit: RichLegg / iStock

HENDERSONVILLE, Tennessee — The United States opened more hotels and rooms than any country between the beginning of March and the end of September, according to global pipeline data from STR. At the same time, the country has shown significant growth in project deferrals and abandonments.

As of October 1, the United States opened 521 properties accounting for 55,395 rooms over the seven-month period. Five additional countries opened more than 2,000 rooms throughout the course of the pandemic.

  1. United States (55,395 rooms)
  2. China (23,470 rooms)
  3. Japan (16,304 rooms)
  4. Germany (9,027 rooms)
  5. Canada (2,748 rooms)
  6. United Kingdom (2,481 rooms)

Year to date through September, 211 projects in the United States were deferred, which is a 56 percent increase over the same period last year. Additionally, 232 projects were abandoned—a 16 percent decrease over 2019.

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“Generally, projects that have already broke ground are going to be finished—but abandonments and deferrals, which are becoming more common, affect the total room count in the pipeline,” said Jan Freitag, STR’s senior vice president of lodging insights. “The movement of projects into these phases is playing into the overall slowing of development activity because there isn’t that constant flow of projects moving into construction. Additionally, there is no longer a rush to move projects from planning to construction because the record-breaking demand of 2019 isn’t there waiting for new hotels to open.”

The number of rooms under construction in the United States has declined from the country’s peak in April (220,207 rooms). In September, the country had 216,063 rooms under construction, which was still up 6.1 percent year over year.

 


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