Lodging Econometrics reports that with 3,645 projects (totaling 460,551 rooms), the 2014 total U.S. lodging construction pipeline stands at its highest level in six years.
After a three-year bottoming formation, the pipeline has now posted five consecutive quarters of double-digit year-over-year (YOY) growth. In both the third and fourth quarters, increases were particularly impressive, exceeding 20%.
Although the breakout might appear robust, pipeline totals are still a long way from the peak of 5,438 projects/718,387 rooms set in 2007.
Projects under construction, the most important predictor of near-term supply growth, has catapulted forward to 1,086 projects/136,442 rooms—the highest level in more than five years. The number of units under construction is up 37% by projects and 34% by rooms (YOY).
Projects scheduled to start construction in the next 12 months have risen strongly, to 1,351 projects/160,061 rooms, up 17% and 13% YOY, respectively.
The growing number of projects in early planning is only just beginning. The cyclical bottom for projects in early planning just occurred in the second quarter of 2014. It bounced back smartly in the second half of the year, adding 221 projects, and ended 2014 at 1,208 projects/164,048 rooms.
Projects in early planning directly influence the number of hotels that will open three to five years outward. Projects that enter the pipeline in early planning are generally larger hotels in downtown or resort locations. Most are upscale select-service projects, while others are upper upscale and luxury full-service hotels that are frequently part of mixed-use developments.
Planning and permitting these larger, more complex projects is typically more protracted and also comes with longer construction periods. These projects generally open near the end of a real estate cycle, often times after the cycle has already peaked and begun to decline.
Project counts in early planning are expected to spurt forward over the next two to three years and make significant additions to new supply towards the end of the decade.
Related Stories
Adaptive Reuse | Jul 27, 2023
Number of U.S. adaptive reuse projects jumps to 122,000 from 77,000
The number of adaptive reuse projects in the pipeline grew to a record 122,000 in 2023 from 77,000 registered last year, according to RentCafe’s annual Adaptive Reuse Report. Of the 122,000 apartments currently undergoing conversion, 45,000 are the result of office repurposing, representing 37% of the total, followed by hotels (23% of future projects).
Hotel Facilities | Jul 26, 2023
Hospitality building construction costs for 2023
Data from Gordian breaks down the average cost per square foot for 15-story hotels, restaurants, fast food restaurants, and movie theaters across 10 U.S. cities: Boston, Chicago, Las Vegas, Los Angeles, Miami, New Orleans, New York, Phoenix, Seattle, and Washington, D.C.
Market Data | Jul 24, 2023
Leading economists call for 2% increase in building construction spending in 2024
Following a 19.7% surge in spending for commercial, institutional, and industrial buildings in 2023, leading construction industry economists expect spending growth to come back to earth in 2024, according to the July 2023 AIA Consensus Construction Forecast Panel.
Hotel Facilities | Jul 21, 2023
In Phoenix, a former motel transforms into a boutique hotel with a midcentury vibe
The Egyptian Motor Hotel’s 48 guest rooms come with midcentury furnishings ranging from egg chairs to Bluetooth speakers that look like Marshall amplifiers.
Sponsored | Fire and Life Safety | Jul 12, 2023
Fire safety considerations for cantilevered buildings [AIA course]
Bold cantilevered designs are prevalent today, as developers and architects strive to maximize space, views, and natural light in buildings. Cantilevered structures, however, present a host of challenges for building teams, according to José R. Rivera, PE, Associate Principal and Director of Plumbing and Fire Protection with Lilker.
Standards | Jun 26, 2023
New Wi-Fi standard boosts indoor navigation, tracking accuracy in buildings
The recently released Wi-Fi standard, IEEE 802.11az enables more refined and accurate indoor location capabilities. As technology manufacturers incorporate the new standard in various devices, it will enable buildings, including malls, arenas, and stadiums, to provide new wayfinding and tracking features.
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.
