The total U.S. hotel construction pipeline stands at 5,090 projects and 606,302 rooms at the end of the first quarter of 2022, up 2% by projects, but down 3% by rooms, according to the Q1 2022 Construction Pipeline Trend Report for the United States from Lodging Econometrics (LE).
In the first quarter of 2022, there were 961 projects/128,784 rooms under construction, down 27% by projects and 28% by rooms YOY.
Projects scheduled to start in the next 12 months, at 1,911 projects/223,030 rooms, are up 2% by projects and 3% by rooms YOY. Projects and rooms in early planning reached a record high in the first quarter, standing at 2,218 projects/254,488 rooms, up 24% by projects and 12% by rooms YOY.
Notably, the upscale and upper-midscale chain scales dominate the pipeline in Q1 with 63% of projects in the total pipeline concentrated in these two chain scales. This has been the case for several years.
There were a total of 1,420 projects/184,692 rooms in the renovation or conversion pipeline in the U.S. during the first quarter. Project conversions and room conversions reached an all-time high in Q1, increasing 59% by projects and 48% by rooms YOY.
Hotel developers eager to break ground on new projects
New projects and development planning that was previously on hold are now getting the green light from investors and developers with buoyed confidence thanks to rather robust domestic leisure travel during the first part of the year. With stronger domestic leisure travel in the U.S., along with the albeit slower revival of corporate and group travel, there is growing confidence in the recovery. Developers are eager to move forward with plans and break ground as this upward trend in hotel business demand is expected to continue throughout 2022.
Through year-end 2021, the U.S. opened 826 projects accounting for 106,192 rooms. A total of 113 hotels/12,464 rooms opened in the first quarter of 2022. Over half of these opens, 68 hotels/7,154 rooms, were in suburban locations, but 41 hotels/4,703 rooms of newly opened hotels, or 36%, were in a top 25 market.
Reflective of the increasing number of projects in early planning and projects scheduled to start in the next 12 months, LE’s forecast for new hotel openings by projects has risen ever so slightly for 2023.
For the remainder of the year, LE forecasts another 649 projects/77,568 rooms to open for a total of 762 hotels/90,032 rooms in 2022, representing a 1.6% increase in new hotel supply. In 2023, LE forecasts an additional 839 hotels/93,169 rooms will open in the U.S., for a 1.6% supply increase.
Related Stories
Hotel Facilities | Feb 12, 2018
Circular hotel will be world’s first energy positive hotel concept above the Arctic Circle
The hotel will provide 360-degree views of the Svartisen glacier and the surrounding arctic nature.
Hotel Facilities | Feb 8, 2018
Nashville hotel takes authenticity to the extreme with dedicated recording studio, performance spaces
Music City has experienced a hotel construction boom in recent years, making for a more competitive market.
Hotel Facilities | Jan 24, 2018
U.S. hotel markets with the largest construction pipelines
Dallas, Houston, and New York lead the way, with more than 460 hotel projects in the works.
Hotel Facilities | Nov 10, 2017
The hotel of the future has just the right amount of tech
CallisonRTKL’s recent survey helps shed some light on how the hotel of the future might strike a balance between tech and the human touch.
Hotel Facilities | Oct 6, 2017
This year’s Radical Innovation Award winners showcase portable and flexible hotel designs
The grand prize hotel concept gives new meaning to “back to nature.”
Adaptive Reuse | Oct 5, 2017
Wexford’s latest innovation center breaks ground in Providence
The campus is expected to include an Aloft hotel.
Giants 400 | Sep 22, 2017
Welcome home: Hotels want guests to feel more like residents than visitors
Because hotels can take as long as six years to complete, spotting trends—and differentiating them from fads—is tough when tastes and systems change so rapidly.
Giants 400 | Sep 22, 2017
Top 80 hotel construction firms
Turner Construction Co., Swinerton, and The Whiting-Turner Contracting Co. top BD+C’s ranking of the nation’s largest hotel sector contractor and construction management firms, as reported in the 2017 Giants 300 Report.
Giants 400 | Sep 22, 2017
Top 30 hotel engineering firms
NV5 Global, WSP, and DeSimone Consulting Engineers top BD+C’s ranking of the nation’s largest hotel sector engineering and EA firms, as reported in the 2017 Giants 300 Report.
