The hotel sector is booming. But for how long?
Last April, the Real Deal, which tracks real estate news and trends, reported that new hotel construction in New York, which peaked in 2014, “is finally crashing” because so many new properties were coming online and developers were shying away from planning new projects.
In the first three months of this year, hoteliers had submitted permit applications for only six new hospitality properties, a total of 512 units, citywide. The Real Deal estimates that barely 10,000 new hotel rooms would be added to New York’s inventory this year, compared to more than 9,000 in 2014.
On Tuesday, Lodging Econometrics, the Portsmouth, N.H.-based market research firm, reported that New York City has the country’s largest hotel construction pipeline by project count: 196 projects and 32,121. New York has had the largest project count since the fourth quarter of 2011.
New York is followed by Houston (170 projects, 20,083 rooms), which has been the second-largest hotel market for the past 10 quarters, according to Lodging Econometrics. The rest of the top five hotel construction metros are Dallas (128 projects/15,662 rooms), Nashville (109/13,789), and Los Angeles (104/17,912).
A day before Lodging Econometrics released this data, STR, a global data benchmarking and analytics firm, released its July 2016 Pipeline Report, which showed 171,276 rooms in 1,305 projects under construction, a 32.6% increase over the same month a year ago.
STR estimates that New York, with an existing supply of 112,468 rooms, had 15,770 rooms under construction, 11.9% more than in July 2015. Three other markets—L.A./Long Beach, Dallas, and Houston—had more than 5,000 rooms under construction.
Conversely, Bobby Bowers, STR’s Senior Vice President of Operations, notes that the San Francisco/San Mateo, Calif., market may be reaching a saturation point, with room construction among the five-lowest in the country.
New York City continues to lead the nation in new hotel construction and rooms under contract. The nation's 26 largest cities are, for the most part, seeing strong growth in their hospitality sectors, even as some developers worry that too much inventory may be coming online. Chart: STR
Related Stories
Engineers | Jun 14, 2023
The high cost of low maintenance
Walter P Moore’s Javier Balma, PhD, PE, SE, and Webb Wright, PE, identify the primary causes of engineering failures, define proactive versus reactive maintenance, recognize the reasons for deferred maintenance, and identify the financial and safety risks related to deferred maintenance.
Mixed-Use | Jun 12, 2023
Goettsch Partners completes its largest China project to date: a mixed-used, five-tower complex
Chicago-based global architecture firm Goettsch Partners (GP) recently announced the completion of its largest project in China to date: the China Resources Qianhai Center, a mixed-use complex in the Qianhai district of Shenzhen. Developed by CR Land, the project includes five towers totaling almost 472,000 square meters (4.6 million sf).
Architects | Jun 6, 2023
Taking storytelling to a new level in building design, with Gensler's Bob Weis and Andy Cohen
Bob Weis, formerly the head of Disney Imagineering, was recently hired by Gensler as its Global Immersive Experience Design Leader. He joins the firm's co-CEO Andy Cohen to discuss how Gensler will focus on storytelling to connect people to its projects.
Mass Timber | May 23, 2023
Luxury farm resort uses CLT framing and geothermal system to boost sustainability
Construction was recently completed on a 325-acre luxury farm resort in Franklin, Tenn., that is dedicated to agricultural innovation and sustainable, productive land use. With sustainability a key goal, The Inn and Spa at Southall was built with cross-laminated and heavy timber, and a geothermal variant refrigerant flow (VRF) heating and cooling system.
Hotel Facilities | May 9, 2023
A new camping destination near Utah’s Zion National Park offers a variety of all-season lodgings and amenities
Outdoor lodging brand AutoCamp has opened a new camping destination near Utah’s Zion National Park. A 16-acre property, AutoCamp Zion is located between the Virgin River and the desert of Southern Utah.
Digital Twin | May 8, 2023
What AEC professionals should know about digital twins
A growing number of AEC firms and building owners are finding value in implementing digital twins to unify design, construction, and operational data.
Hotel Facilities | May 2, 2023
U.S. hotel construction up 9% in the first quarter of 2023, led by Marriott and Hilton
In the latest United States Construction Pipeline Trend Report from Lodging Econometrics (LE), analysts report that construction pipeline projects in the U.S. continue to increase, standing at 5,545 projects/658,207 rooms at the close of Q1 2023. Up 9% by both projects and rooms year-over-year (YOY); project totals at Q1 ‘23 are just 338 projects, or 5.7%, behind the all-time high of 5,883 projects recorded in Q2 2008.
Market Data | Apr 11, 2023
Construction crane count reaches all-time high in Q1 2023
Toronto, Seattle, Los Angeles, and Denver top the list of U.S/Canadian cities with the greatest number of fixed cranes on construction sites, according to Rider Levett Bucknall's RLB Crane Index for North America for Q1 2023.
Contractors | Apr 10, 2023
What makes prefabrication work? Factors every construction project should consider
There are many factors requiring careful consideration when determining whether a project is a good fit for prefabrication. JE Dunn’s Brian Burkett breaks down the most important considerations.
Building Tech | Mar 14, 2023
Reaping the benefits of offsite construction, with ICC's Ryan Colker
Ryan Colker, VP of Innovation at the International Code Council, discusses how municipal regulations and inspections are keeping up with the expansion of off-site manufacturing for commercial construction. Colker speaks with BD+C's John Caulfield.
