Finance & DevelopmentDevelopmentU.S. Hotel Construction Pipeline Continues Growth in Q1 2019

U.S. Hotel Construction Pipeline Continues Growth in Q1 2019

PORTSMOUTH, N.H.—At the end of the first quarter of 2019, the total U.S. hotel construction pipeline continued to expand with 5,647 projects totaling 687,941 rooms—up a strong 7 percent by projects and 8 percent by rooms year-over-year (YOY), according to analysts at Lodging Econometrics (LE). These pipeline totals are just 236 projects, or 4 percent, shy of the all-time high of 5,883 projects/785,547 rooms reached in the second quarter of 2008. LE analysts expect that record to be pierced later in the year, as conversions and renovations are already at record levels.

Projects currently under construction stand at 1,709 projects/227,924 rooms with projects scheduled to start construction in the next 12 months at 2,429 projects/281,395 rooms. U.S. hotel construction projects in the early planning stage stand at 1,509 projects/178,622 rooms.

The upscale, upper-midscale, and midscale segments all reached record-highs for both projects and rooms. Sixty-six percent of projects in the total pipeline are concentrated in two chain scales: upscale and upper midscale.

Annualized construction starts are at the highest level since 2008. In 2019, LE forecasts a 2.2 percent supply growth rate with 1,038 new hotels/118,385 rooms expected to open. For 2020, LE anticipates 1,174 new hotel openings and 128,598 rooms.

Hotel operations had a good quarter, but mostly as a result of expense improvements. Only seven of the top 25 markets showed occupancy increases quarter-over-quarter. Only 11 markets had RevPAR increases. Overall, U.S. demand growth was up 2.4 percent while supply was up 2 percent.

 


Keep up with the industry.

Subscribe to LODGING

RELATED ARTICLES

Smart Hotel Manager Announces Collaboration With Remington Hospitality

DOVER, Delaware—Smart Hotel Manager announced that the company is working with Remington Hospitality to advance its Live Safety platform. The collaboration reflects a shared...

Coury Hospitality Expands Portfolio With Two Management Agreements

DALLAS, Texas—Coury Hospitality announced that it has assumed management of Plunge Beach Resort in Lauderdale-by-the-Sea, Florida, and Residence Inn Alexandria Old Town South at...

JLL Secures Sale of Grand Eastonian Hotel & Suites

NEW YORK CITY, New York—JLL’s Hotels & Hospitality Group announced the $5.6 million sale of the Grand Eastonian Hotel & Suites, a 50-room hotel...

My Place Hotel-Raleigh/Garner Opens in Garner, North Carolina

ABERDEEN, South Dakota—My Place Hotels of America has opened My Place Hotel-Raleigh/Garner in Garner, North Carolina, the brand’s third property in the state. The...

BWH Hotels’ Soft Brands Empower Independent Hotels with Global Strength 

As travelers increasingly seek authentic, locally inspired experiences, BWH Hotels is meeting the moment with a diverse portfolio of soft brands that blend individuality...

Waldorf Astoria New York to Reopen After Renovation

NEW YORK CITY—Waldorf Astoria New York offered the first looks at a restoration of the hotel’s architecture with new designs. The property, which closed...