According to Lodging Econometrics’ (LE’s) Construction Pipeline Trend Report for the United States, the total U.S. construction pipeline stands at 4,967 projects/622,218 rooms at the end of Q1‘21. While this is a slight dip in the pipeline year-over-year (YOY), it’s not unexpected given the lockdown and travel restrictions over the past year. Further, the pipeline shows no signs of great decline compared to what occurred during the ’08 and ’09 recession. Actually, projects and rooms in the early planning stage are up significant YOY (stats on this below).
Although hotel development may still be tepid in Q1, continued government support and the extension of programs has aided many businesses to get back on their feet as more and more are working to re-staff and re-open.
To date, nearly half of the eligible population is at least partially vaccinated, leading to an ease in requirements regarding group gatherings and indoor activities. Clinical trials of vaccines for children (ages 12 to 15) have been highly effective and look very promising for another strong vaccine wave. Additionally, the CDC has announced that, so long as people continue to take COVID-19 precautions, fully vaccinated people are now safe to travel domestically. Americans are becoming more optimistic about summer travel and are making plans now. As a result, operating performance is expected to soar late this spring, summer, and fall.
At the end of Q1 ’21, projects currently under construction stand at 1,311 projects/179,304 rooms. Projects under construction continue to move towards opening. Through year-end 2020, the U.S. opened 841 projects accounting for 97,959 rooms. A total of 229 hotels/27,528 rooms opened in the first quarter of 2021. As delayed Q4 opens are coming online, LE is forecasting 691 projects/81,866 rooms to open by the end of 2021, representing a 2.0% increase in new hotel supply. For all of 2022, LE is forecasting 963 projects/111,235 rooms to open and a 2.0% supply increase.
Projects scheduled to start construction in the next 12 months total 1,866 projects/215,911 rooms. Of the 1,866 projects scheduled to begin in the next 12 months, 26.8% of these belong to extended-stay brands, a segment of the industry that developers have become increasingly interested in over the last few years. Projects in the early planning stage stand at 1,790 projects/227,003 rooms, up 10% by projects and 14% by rooms YOY.
Additionally, there were a total of 1,198 projects/190,475 rooms under renovation or conversion in the U.S. during the first quarter. This is a small decline after seeing a slight increase at the end of 2020.
Related Stories
Contractors | Feb 14, 2023
The average U.S. contractor has nine months worth of construction work in the pipeline
Associated Builders and Contractors reports today that its Construction Backlog Indicator declined 0.2 months to 9.0 in January, according to an ABC member survey conducted Jan. 20 to Feb. 3. The reading is 1.0 month higher than in January 2022.
Office Buildings | Feb 9, 2023
Post-Covid Manhattan office market rebound gaining momentum
Office workers in Manhattan continue to return to their workplaces in sufficient numbers for many of their employers to maintain or expand their footprint in the city, according to a survey of more than 140 major Manhattan office employers conducted in January by The Partnership for New York City.
Giants 400 | Feb 9, 2023
New Giants 400 download: Get the complete at-a-glance 2022 Giants 400 rankings in Excel
See how your architecture, engineering, or construction firm stacks up against the nation's AEC Giants. For more than 45 years, the editors of Building Design+Construction have surveyed the largest AEC firms in the U.S./Canada to create the annual Giants 400 report. This year, a record 519 firms participated in the Giants 400 report. The final report includes 137 rankings across 25 building sectors and specialty categories.
Multifamily Housing | Feb 7, 2023
Multifamily housing rents flat in January, developers remain optimistic
Multifamily rents were flat in January 2023 as a strong jobs report indicated that fears of a significant economic recession may be overblown. U.S. asking rents averaged $1,701, unchanged from the prior month, according to the latest Yardi Matrix National Multifamily Report.
Market Data | Feb 6, 2023
Nonresidential construction spending dips 0.5% in December 2022
National nonresidential construction spending decreased by 0.5% in December, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $943.5 billion for the month.
Architects | Jan 23, 2023
PSMJ report: The fed’s wrecking ball is hitting the private construction sector
Inflation may be starting to show some signs of cooling, but the Fed isn’t backing down anytime soon and the impact is becoming more noticeable in the architecture, engineering, and construction (A/E/C) space. The overall A/E/C outlook continues a downward trend and this is driven largely by the freefall happening in key private-sector markets.
Hotel Facilities | Jan 23, 2023
U.S. hotel construction pipeline up 14% to close out 2022
At the end of 2022’s fourth quarter, the U.S. construction pipeline was up 14% by projects and 12% by rooms year-over-year, according to Lodging Econometrics.
Products and Materials | Jan 18, 2023
Is inflation easing? Construction input prices drop 2.7% in December 2022
Softwood lumber and steel mill products saw the biggest decline among building construction materials, according to the latest U.S. Bureau of Labor Statistics’ Producer Price Index.
Market Data | Jan 10, 2023
Construction backlogs at highest level since Q2 2019, says ABC
Associated Builders and Contractors reports today that its Construction Backlog Indicator remained unchanged at 9.2 months in December 2022, according to an ABC member survey conducted Dec. 20, 2022, to Jan. 5, 2023. The reading is one month higher than in December 2021.
Market Data | Jan 6, 2023
Nonresidential construction spending rises in November 2022
Spending on nonresidential construction work in the U.S. was up 0.9% in November versus the previous month, and 11.8% versus the previous year, according to the U.S. Census Bureau.
