In the third quarter of 2021, analysts at Lodging Econometrics (LE) report that the top five markets with the largest total hotel construction pipelines by projects are: Dallas with 147 projects/17,711 rooms, Atlanta with 139 projects/18,659 rooms, Los Angeles with 133 projects/22,145 rooms, New York City with 130 projects/22,417 rooms, and Houston, with 90 projects/9,225 rooms. These top five markets account for 13% of the projects and 15% of rooms in the total U.S. pipeline.
The top 25 U.S. markets account for 33% of all pipeline projects and 37% of all rooms in the U.S. hotel construction pipeline. There are currently nine markets in the United States that have 20 or more projects under construction in their pipelines. Markets with the greatest number of projects already in the ground are New York with 95 projects/16,516 rooms, Atlanta with 33 projects/5,311 rooms, Dallas with 31 projects/4,399 rooms, Los Angeles with 30 projects/4,954 rooms, and Austin with 28 projects/3,577 rooms. Atlanta has the greatest number of projects scheduled to start construction in the next 12 months, with 54 projects/7,529 rooms. Dallas follows with 48 projects/5,643 rooms, and then Los Angeles with 47 projects/7,343 rooms, Phoenix with 44 projects/4,834 rooms, and Houston with 42 projects/3,748 rooms. The top five markets with the greatest number of projects in the early planning stage at the end of the third quarter are Dallas with 68 projects/7,669 rooms, Los Angeles with 56 projects/9,848 rooms, Atlanta with 52 projects/5,819, Orlando with 41 projects/7,754 rooms, and Washington D.C. with 40 projects/7,310 rooms.
The increased demand for building materials and shortages in supply, in the wake of the COVID-19 pandemic, has led to higher prices and continues to be major hurdles for contractors, developers, and investors. Nevertheless, in the third quarter, Dallas has the highest number of new projects announced into the pipeline with 18 projects/1,756 rooms. Atlanta follows with 17 projects/1,777 rooms, Phoenix with 10 projects/1,819 rooms, and then Houston with 9 projects/946 rooms.
The renovation and conversion pipeline shows no sign of decline. Presently, there are 1,253 hotels/176,305 rooms under renovation or conversion across the U.S., and twenty-four of the top 50 markets in the U.S. currently have 10 or more hotels undergoing renovation or conversion activity at the end of Q3‘21.
In the first three quarters of 2021, the U.S. opened 665 new hotels with 85,306 rooms. The markets with the highest number of new openings throughout the first three quarters are New York City with 21 hotels/3,554 rooms, Atlanta with 21 hotels/2,925 rooms, Orlando with 19 hotels/2,908 rooms, Houston with 16 hotels/2,166 rooms and Nashville with 16 hotels/2,116 rooms. In Q3, alone, the top 50 markets in the U.S. saw 98 hotels /15,454 rooms open. The U.S. had 189 hotels/25,995 rooms total open in the third quarter.
In 2021, New York City is forecasted to open 51 new hotels and 7,074 rooms, Atlanta follows with 25 hotels/3,499 rooms, then Nashville with 23 hotels/3,011 rooms, Houston with 23 hotels/2,787 rooms, and Orlando with 21 hotels/3,393 rooms. U.S. supply growth is forecasted to be 2.0% in 2021 and is expected to remain the same into 2022.
Related Stories
| Mar 15, 2013
7 most endangered buildings in Chicago
The Chicago Preservation Society released its annual list of the buildings at high risk for demolition.
| Mar 14, 2013
25 cities with the most Energy Star certified buildings
Los Angeles, Washington, D.C., and Chicago top EPA's list of the U.S. cities with the greatest number of Energy Star certified buildings in 2012.
| Mar 7, 2013
Vegas rebound: Genting Group acquires assets of stalled Vegas casino-resort
International hospitality giant Genting Group has announced a deal with Boyd Gaming Corp. to purchase the land and assets, including partially built structures, of the stalled Echelon casino-resort in Las Vegas.
| Mar 6, 2013
Hospital project pioneers BIM/VDC-based integrated project delivery
The Marlborough (Mass.) Hospital Cancer Pavilion is one of the first healthcare projects to use BIM/VDC-based integrated project delivery.
| Mar 4, 2013
Gehry unveils design for Santa Monica hotel-condo tower
If all goes as planned, Frank Gehry will design the first building in his hometown in some 25 years.
| Mar 3, 2013
Hines acquires Archstone's interest in $700 million CityCenterDC project
The Washington D.C. office of Hines, the international real estate firm, announced the acquisition of the ownership interest of their partner, Archstone, in the mixed-use CityCenterDC project that is currently under construction in downtown Washington, D.C.
| Feb 25, 2013
10 U.S. cities with the best urban forests
Charlotte, Denver, and Milwaukee are among 10 U.S. cities ranked recently by the conservation organization American Forests for having quality urban forest programs.
| Feb 18, 2013
Top 10 kitchen and bath design trends for 2013
Gray color schemes and transitional styles are among the top trends identified by more than 300 kitchen and bath design experts surveyed by the National Kitchen & Bath Association (NKBA).
| Feb 6, 2013
George W. Bush Presidential Center among award-winning roofing projects honored by Sika Sarnafil
Winners of the 2012 Contractor Project of the Year Competition were announced this week by Sika Sarnafil. The annual competition highlights excellence in roofing installation. Roofing contractors are judged based on project complexity, design uniqueness, craftsmanship, and creative problem solving.
| Feb 5, 2013
5 forces driving hotel investment
Jones Lang LaSalle’s Hotels & Hospitality Group believes that signs point to an on-going uptick in Americas hotel transactions activity sooner rather than later. They identify the five forces that will drive the hotel investment market during the next five years.