U.S. Markets With the Most Rooms Under Construction
1. New York
13,801 rooms (10.9 percent of existing supply)
2. Las Vegas
9,259 rooms (5.6 percent of existing supply)
7,322 rooms (5.7 percent of existing supply)
6,770 rooms (14.5 percent of existing supply)
5. Los Angeles/Long Beach
6,111 rooms (5.8 percent of existing supply)
5,709 (6.1 percent of existing supply)
Hendersonville, Tenn. — STR’s hotel pipeline data for the United States showed 1,563 projects accounting for 205,299 rooms in construction as of October 2019. This represented a 5.5 percent year-over-year increase in the number of rooms in the final phase of the development pipeline.
“Growth in construction activity had been hovering closer to 10 percent, and the 5.5 percent increase in October is actually the lowest for the industry since February,” said Bobby Bowers, STR’s senior vice president of operations. “There also hasn’t been too much of a climb from the last few months, so we’re still roughly 6,000 rooms away from the construction peak (211,000 in December 2007). When we drill down to see which segments will see the largest impact of new inventory, luxury chains stand out with 10.9 percent of existing supply represented in construction. No other segment is above 7.9 percent in that ratio.”
In absolute values, a majority of the country’s construction activity continues to be focused in the select-service segments: upscale hotels account for 63,428 rooms, upper-midscale for 62,542 rooms; and upper-upscale for 27,875 rooms.
Among major markets, six reported more than 5,000 rooms under construction between new construction, expansion, renovation, and conversion projects. New York led with 13,801 rooms, which represented 10.9 percent of the market’s existing supply, followed by Las Vegas (9,259 rooms, 5.6 percent of existing supply).