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
| Aug 11, 2010
Webcor, Hunt Construction lead the way in mixed-use construction, according to BD+C's Giants 300 report
A ranking of the Top 30 Mixed-Use Contractors based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants
| Aug 11, 2010
Report: Fraud levels fall for construction industry, but companies still losing $6.4 million on average
The global construction, engineering and infrastructure industry saw a significant decline in fraud activity with companies losing an average of $6.4 million over the last three years, according to the latest edition of the Kroll Annual Global Fraud Report, released today at the Association of Corporate Counsel’s 2009 Annual Meeting in Boston. This new figure represents less than half of last year’s amount of $14.2 million.
| Aug 11, 2010
First CityCenter projects earn LEED Gold
CityCenter announced today that it has received three Leadership in Energy and Environmental Design LEED Gold certifications from the U.S. Green Building Council for: 1) ARIA Resort's hotel tower; 2) ARIA Resort's convention center and theater; 3) Vdara Hotel. ARIA and Vdara will open in December on the Las Vegas Strip and are the first of CityCenter's developments to be LEED certified.
| Aug 11, 2010
And the world's tallest building is…
At more than 2,600 feet high, the Burj Dubai (right) can still lay claim to the title of world's tallest building—although like all other super-tall buildings, its exact height will have to be recalculated now that the Council on Tall Buildings and Urban Habitat (CTBUH) announced a change to its height criteria.
| Aug 11, 2010
Spa resort in harmony with mountain setting
The Sparkling Hill Resort and Wellness Hotel in Vernon, B.C., looks as if it was chiseled out of bedrock and jutting from the mountainside. Designed by the Victoria, B.C., office of Cannon Design, the 240,000-sf resort has 152 guest rooms with floor-to-ceiling windows and spa-like bathrooms, as well as a signature 20,000-sf whole-body wellness spa with treatment rooms designed to feel like they...
| Aug 11, 2010
Triangular tower targets travelers
Chicago-based Goettsch Partners is designing a new mixed-use high-rise for the Chinese city of Dalian, located on the Yellow Sea coast. Developed by Hong Kong-based China Resources Land Limited, the tower will have almost 1.1 million sf, which includes a 377-room Grand Hyatt hotel, 84 apartments, three restaurants, banquet space, and a spa and fitness center.
| Aug 11, 2010
CityCenter projects get LEED Gold
MGM Mirage and Infinity World Development have received LEED Gold certification for the first three CityCenter projects: the ARIA Resort hotel tower, ARIA Resort convention center and theater, and the Vdara Hotel (above). The CityCenter developers anticipate Gold or Silver LEED certification for the project's remaining developments, which include a Mandarin Oriental hotel, a 500,000-sf retail a...
| Aug 11, 2010
RMJM unveils design details for $1B green development in Turkey
RMJM has unveiled the design for the $1 billion Varyap Meridian development it is master planning in Istanbul, Turkey's Atasehir district, a new residential and business district. Set on a highly visible site that features panoramic views stretching from the Bosporus Strait in the west to the Sea of Marmara to the south, the 372,000-square-meter development includes a 60-story tower, 1,500 resi...
| Aug 11, 2010
'Feebate' program to reward green buildings in Portland, Ore.
Officials in Portland, Ore., have proposed a green building incentive program that would be the first of its kind in the U.S. Under the program, new commercial buildings, 20,000 sf or larger, that meet Oregon's state building code would be assessed a fee by the city of up to $3.46/sf. The fee would be waived for buildings that achieve LEED Silver certification from the U.
| Aug 11, 2010
Five-star resort breaks ground on the Black Sea
Construction work has commenced on a five-star resort and leisure destination along the Black Sea coast in Batumi, Georgia. The RTKL-designed resort consists of two towers rising 86 and 58 meters over a two-story podium. The larger tower contains 250 guestrooms and suites while the smaller tower offers 78 residential apartments.
