According to Lodging Econometrics’ (LE) most recent construction pipeline trend report, at the close of the second quarter, the top five markets with the largest hotel construction pipelines are New York City, with 146 projects/25,232 rooms; Los Angeles with 135 projects/22,586 rooms; Dallas with 132 projects/16,183 rooms; Atlanta with 129 projects/17,845 rooms; and Nashville with 91 projects/12,703 rooms.
The five top markets with the most projects currently under construction are New York City with 111 projects/19,582 rooms, Atlanta with 39 projects/5,795 rooms, Los Angeles with 34 projects/5,771 rooms, Dallas with 30 projects/4,173 rooms, and Austin with 29 projects/3,768 rooms. These five markets collectively account for nearly 25% of the total number of rooms currently under construction in the U.S.
According to LE’s research, many hotel owners, developers, and management groups have used the operational downtime, caused by COVID-19’s impact on operating performance, as an opportunity to upgrade and renovate their hotels and/or redefine their hotels with a brand conversion. In the second quarter of 2021, LE recorded a combined renovation and conversion total of 1,135 active projects with 176,445 rooms for the U.S. The markets with the largest combined number of renovations and conversions are New York with 25 projects/7,957 rooms, Houston with 24 projects/3,549 rooms, Los Angeles with 24 projects/3,423 rooms, Chicago with 20 projects/2,803 rooms, and Miami with 19 projects/2,305 rooms.
Despite previous, and in some cases, ongoing delays in the pipeline, and with the recent changes to travel restrictions and the summer travel season upon us, many developers are feeling more optimistic about the future of the lodging industry as new hotel announcements continue. In the second quarter of 2021, Memphis recorded the highest count of new projects announced into the pipeline with 8 projects/927 rooms. Austin followed with 7 projects/1,084 rooms, then Atlanta with 6 projects/658 rooms, Washington DC with 5 projects/1,554 rooms, and Miami with 5 projects/499 rooms.
Hotels forecast to open in 2021 are led by New York City with 59 projects/8,583 rooms for a 7.2% supply increase, followed by Orlando with 22 projects/ 3,555 rooms for a 2.6% supply increase, Nashville with 22 projects/2,938 rooms for a 5.7% supply increase, Atlanta with 22 projects/2,930 rooms for a 2.7% supply increase, and then Houston with 22 projects/2,470 rooms for a 2.7% supply increase.
In 2022, New York is forecast to, again, top the list of new hotel openings with 46 projects/7,934 rooms while at this time, Dallas is anticipated to lead in 2023 with 35 projects/4,013 rooms expected to open.
Related Stories
Market Data | Oct 31, 2016
Nonresidential fixed investment expands again during solid third quarter
The acceleration in real GDP growth was driven by a combination of factors, including an upturn in exports, a smaller decrease in state and local government spending and an upturn in federal government spending, says ABC Chief Economist Anirban Basu.
Market Data | Oct 28, 2016
U.S. construction solid and stable in Q3 of 2016; Presidential election seen as influence on industry for 2017
Rider Levett Bucknall’s Third Quarter 2016 USA Construction Cost Report puts the complete spectrum of construction sectors and markets in perspective as it assesses the current state of the industry.
Industry Research | Oct 25, 2016
New HOK/CoreNet Global report explores impact of coworking on corporate real rstate
“Although coworking space makes up less than one percent of the world’s office space, it represents an important workforce trend and highlights the strong desire of today’s employees to have workplace choices, community and flexibility,” says Kay Sargent, Director of WorkPlace at HOK.
Market Data | Oct 24, 2016
New construction starts in 2017 to increase 5% to $713 billion
Dodge Outlook Report predicts moderate growth for most project types – single family housing, commercial and institutional building, and public works, while multifamily housing levels off and electric utilities/gas plants decline.
High-rise Construction | Oct 21, 2016
The world’s 100 tallest buildings: Which architects have designed the most?
Two firms stand well above the others when it comes to the number of tall buildings they have designed.
Market Data | Oct 19, 2016
Architecture Billings Index slips consecutive months for first time since 2012
“This recent backslide should act as a warning signal,” said AIA Chief Economist, Kermit Baker.
Market Data | Oct 11, 2016
Building design revenue topped $28 billion in 2015
Growing profitability at architecture firms has led to reinvestment and expansion
Market Data | Oct 4, 2016
Nonresidential spending slips in August
Public sector spending is declining faster than the private sector.
Industry Research | Oct 3, 2016
Structure Tone survey shows cost is still a major barrier to building green
Climate change, resilience and wellness are also growing concerns.
Industry Research | Sep 27, 2016
Sterling Risk Sentiment Index indicates risk exposure perception remains stable in construction industry
Nearly half (45%) of those polled say election year uncertainty has a negative effect on risk perception in the construction market.
