As seen in the Q1 2024 U.S. Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE), at the end of the first quarter, there are 6,065 projects with 702,990 rooms in the pipeline. This new all-time high represents a 9% year-over-year (YOY) increase in projects and a 7% YOY increase in rooms compared to last year.
The details can be seen directly within the stages of the pipeline, which all saw YOY growth in Q1. Presently, there are 1,144 projects comprising 141,336 rooms under construction, marking a 9% increase in projects and a 1% increase in rooms YOY. Projects slated to start construction in the next 12 months total 2,259 projects with 260,968 rooms, reflecting a 10% rise in projects and an 8% increase in rooms YOY.
Notably, both projects and room counts in the early planning stage increased by 9% YOY, reaching record-high figures of 2,662 projects and 300,686 rooms, respectively. Of all the projects in the pipeline, a little over half of them are concentrated within the upscale, upper-midscale, and midscale chain scales. In Q1, the upper midscale and midscale segments hit record-high project and room counts. The luxury chain scale also reached a record-high project total in Q1.
The latest data from LE also highlights the dominance of extended-stay brands in the pipeline at Q1, a segment that developers have increasingly favored in recent years. These brands now account for 37% of the total projects under construction, 41% of projects scheduled to begin within the next 12 months, and 39% of projects in the early planning stage. Sixty-three percent of the extended stay projects in the pipeline are branded with brands within the middle tier extended stay segment.
Renovation and brand conversion activities in the U.S. have also seen significant growth, reaching record-high combined totals of 2,041 projects and 266,405 rooms. Brand conversions, in particular, have hit a new record-high of 1,235 projects with 114,680 rooms, growing 14% by projects YOY, while announced renovations at Q1 stand at 806 projects and 151,725 rooms. LE analysts anticipate this robust conversion and renovation activity to continue throughout 2024.
In terms of new hotel openings, the first quarter saw the opening of 114 new hotels with 15,506 rooms in the U.S. Over half of these opens, 72 hotels/8,269 rooms, were in suburban locations, and 60 hotels/10,036 rooms (or 53%/65%) of newly opened hotels were located within the top 50 markets. With a record number of projects in early planning and an increasing number of projects scheduled to start in the next 12 months, LE analysts project modest growth in new hotel openings through 2024.
The LE forecast for the remainder of 2024 includes the opening of another 547 projects with 60,483 rooms, totaling 661 new hotels with 75,989 rooms and representing a 1.3% increase in new hotel supply by year-end. Looking ahead to 2025, LE analysts anticipate an additional 790 new hotels with 85,561 rooms to open in the U.S., resulting in a 1.5% supply increase.
Related Stories
| Aug 11, 2010
Manhattan's Gouverneur Healthcare Services tops out renovation, expansion
One year after breaking ground, the Building Team for the renovation and expansion of the Gouverneur Healthcare Services facility on Manhattan's Lower East Side topped out the $180 million project. Designed by New York-based RMJM, the development involves a 316,000-sf renovation and 108,000-sf addition that will house a 295-bed nursing facility and five-story ambulatory care center.
| Aug 11, 2010
Decline expected as healthcare slows, but hospital work will remain steady
The once steady 10% growth rate in healthcare construction spending has slowed, but hasn't entirely stopped. Spending is currently 1.7% higher than the same time last year when construction materials costs were 8% higher. The 2.5% monthly jobsite spending decline since last fall is consistent with the decline in materials costs.
| Aug 11, 2010
Luxury Hotel required faceted design
Goettsch Partners, Chicago, designed a new five-star, 214-room hotel for the King Abdullah Financial District (KAFD) in Riyadh, Saudi Arabia. The design-build project, with Saudi Oger Ltd. as contractor and Rayadah Investment Co. as developer, has a three-story podium supporting a 17-story glass tower with a nine-story opening that allows light to penetrate the mass of the building.
| Aug 11, 2010
Alabama hospital gets a four-story addition
Birmingham, Ala.-based Hoar Construction has completed the North Tower addition at Thomas Hospital in Fairhope, Ala. The four-story, 123,000-sf addition accommodates an ER on the first floor, 32 private patient rooms and nursing support on the second and third floors, and room for 32 planned patient rooms on the top floor.
| Aug 11, 2010
Florida mixed-use complex includes retail, residential
The $325 million Atlantic Plaza II lifestyle center will be built on 8.5 acres in Delray Beach, Fla. Designed by Vander Ploeg & Associates, Boca Raton, the complex will include six buildings ranging from three to five stories and have 182,000 sf of restaurant and retail space. An additional 106,000 sf of Class A office space and a residential component including 197 apartments, townhouses, ...
| Aug 11, 2010
America's Greenest Hospital
Hospitals are energy gluttons. With 24/7/365 operating schedules and stringent requirements for air quality in ORs and other clinical areas, an acute-care hospital will gobble up about twice the energy per square foot of, say, a commercial office building. It is an achievement worth noting, therefore, when a major hospital achieves LEED Platinum status, especially when that hospital attains 14 ...
| Aug 11, 2010
3 Hospitals, 3 Building Teams, 1 Mission: Optimum Sustainability
It's big news in any city when a new billion-dollar hospital is announced. Imagine what it must be like to have not one, not two, but three such blockbusters in the works, each of them tracking LEED-NC Gold certification from the U.S. Green Building Council. That's the case in San Francisco, where three new billion-dollar-plus healthcare facilities are in various stages of design and constructi...
| Aug 11, 2010
Westin Hotel
Mid-twentieth-century projects are in a state of limbo. In many cities, safeguards against quick demolition don't even cover “new” buildings built after 1939, yet many such buildings may be obsolete by current standards. The Farmers and Mechanics Savings Bank, located in downtown Minneapolis, was one such building, a rare example of architecture from a time when American design was ...
| Aug 11, 2010
Platinum Award: Monumentally Hip Hotel Conversion
At one time the tallest building west of the Mississippi, the Foshay Tower has stood proudly on the Minneapolis skyline since 1929. Built by Wilbur Foshay as a tribute to the Washington Monument, the 30-story obelisk served as an office building—and cultural icon—for more than 70 years before the Ryan Companies and co-developer RWB Holdings partnered with Starwood Hotels & Resor...
| Aug 11, 2010
Hilton President Hotel
Once an elegant and fashionably trendy locale, the Presidential Hotel played host to the 1928 Republican National Convention where Herbert Hoover was nominated for President, and acted as a hot spot for Kansas City Jazz in the '30s and '40s. The hotel was eventually abandoned in 1984, at which point it became a haven for vagabonds and pigeons, collecting animal waste and incurring significant s...
