In the third quarter of 2018, analysts at Lodging Econometrics (LE) report that the top five markets with the largest total hotel construction pipelines are: New York City with 170 projects/29,630 rooms; Dallas with 157 projects/18,954 rooms; Houston with 150 projects/16,473 rooms; Los Angeles with 141 projects/24,129 rooms; and Nashville with 115 projects/15,179 rooms.
Projects already under construction and those scheduled to start construction in the next 12 months, combined, have a total of 3,782 projects/213,798 rooms and are at cyclical highs. Markets with the greatest number of projects already in the ground and those scheduled to start construction in the next 12 months are New York with 145 projects/24,675 rooms, Dallas with 112 projects/13,854 rooms, Houston with 103 projects/11,562 rooms, Los Angeles with 92 projects/14,249 rooms, and Nashville with 88 projects/12,322 rooms.
In the third quarter, Los Angeles has the highest number of new projects announced into the pipeline with 22 projects/6,457 rooms. Detroit follows Los Angeles with 18 projects/1,937 rooms, Dallas with 14 projects/1,529 rooms, New York City with 12 projects/1,857 rooms, and then Atlanta with 12 projects/1,354 rooms.
Reflecting the strong cyclical highs in the pipeline, LE’s forecast for new hotel openings will continue to rise in 2018-2020. In 2018, New York City tops the list with 29 new hotels expected to open/5,351 rooms, Dallas with 29 projects/3,187 rooms, Houston with 27 projects/3,259 rooms, Nashville with 22 projects/3,018 rooms, and Los Angeles with 12 projects/2,152 rooms. In the 2019 forecast, New York continues to lead with the highest number of new hotels expected to open with 59 projects/8,964 rooms followed by Houston with 31 projects/3,098 rooms and Dallas with 30 projects/3,379 rooms. In 2020, Dallas is forecast to take the lead for new hotel openings with 41 projects/4,809 rooms expected to open, followed by New York with 36 projects/5,978 rooms, and Los Angeles with 33 projects/4,292 rooms expected to open.
With the exception of New York City and Houston, the other markets mentioned in the opening show that supply growth has begun to surpass demand. The variances in 2018 year-to-date are small but are certain to widen in the next two years, given the strength of these pipeline in the markets.
All in all, 10 of the top 25 markets show supply growth minimally exceeding demand growth in 2018.
Related Stories
Market Data | Oct 4, 2019
Global construction output growth will decline to 2.7% in 2019
It will be the slowest pace of growth in a decade, according to GlobalData.
Market Data | Oct 2, 2019
Spending on nonresidential construction takes a step back in August
Office, healthcare, and public safety are among the fastest-growing sectors, according to the U.S. Census Bureau's latest report.
Market Data | Sep 27, 2019
The global hotel construction pipeline ascends to new record highs
With the exception of Latin America, all regions of the globe either continued to set record high pipeline counts or have already settled into topping-out formations amidst concerns of a worldwide economic slowdown.
Market Data | Sep 25, 2019
Senate introduces The School Safety Clearinghouse Act
Legislation would create a federally funded and housed informational resource on safer school designs.
Market Data | Sep 18, 2019
Substantial decline in Architecture Billings
August report suggests greatest weakness in design activity in several years.
Market Data | Sep 17, 2019
ABC’s Construction Backlog Indicator inches lower in July
Backlog in the heavy industrial category increased by 2.3 months and now stands at its highest level in the history of the CBI series.
Market Data | Sep 13, 2019
Spending on megaprojects, already on the rise, could spike hard in the coming years
A new FMI report anticipates that megaprojects will account for one-fifth of annual construction spending within the next decade.
Architects | Sep 11, 2019
Buoyed by construction activity, architect compensation continues to see healthy gains
The latest AIA report breaks down its survey data by 44 positions and 28 metros.
Market Data | Sep 11, 2019
New 2030 Commitment report findings emphasize need for climate action
Profession must double down on efforts to meet 2030 targets.
Market Data | Sep 10, 2019
Apartment buildings and their residents contribute $3.4 trillion to the national economy
New data show how different aspects of the apartment industry positively impact national, state and local economies.
