In its fall report, buoyed by a steady consumer-driven economy, analysts at Lodging Econometrics (LE) reported that the total U.S. construction pipeline stood at 5,704 projects/700,496 rooms, up 6% by projects and 8% by rooms year-over-year (YOY). Pipeline totals continue to climb closer to the all-time high of 5,883 projects/785,547 rooms reached in the second quarter of 2008, and are just 179 projects shy.
In its eighth consecutive quarter of growth, projects currently under construction stand at 1,729 projects/235,278 rooms, the highest count recorded since the second quarter of 2008. Projects scheduled to start construction in the next 12 months, currently 44% of all pipeline projects, was 2,479 projects/286,125 rooms, very close to the all-time high set in 2009. It’s up a whopping 16% in projects and 13% in rooms, YOY. Projects in the early planning stage stand at 1,496 projects/179,093 rooms.
But as a result of declines in commercial investment brought about by the indecision caused by the global slowdown and the prolonged tariff imbroglio, this is the second quarter in a row where construction starts have declined, an indicator that pipelines growth may top out in late 2020/2021.
Through the end of the third quarter, 704 new hotels with 81,111 rooms opened across the U.S. with another 299 projects/33,059 rooms expected to open by year-end. New hotel openings in the LE forecast for 2020 stand at 1,112 new hotels/122,702 rooms followed by 1,126 new hotels/130,447 rooms scheduled to open in 2021.
This quarter is the first time this cycle where supply growth at 2% has risen and drawn even with demand growth which has fallen to 2%. In 2019, 16 of the top 25 markets show occupancy declines YOY while 11 markets show RevPAR declines.
Related Stories
| Nov 23, 2011
USGBC launches app lab for LEED certification process
The U.S. Green Building Council has released the App Lab, a searchable catalog of third-party apps that are integrated with LEED data.
| Nov 23, 2011
Document gives advice on stormwater runoff management
The report, “Rooftops to Rivers II,” provides tips on how cities can use smart infrastructure and green building design to minimize pollution from stormwater runoff and other wastewaters.
| Nov 23, 2011
Zoning changes proposed to make New York City buildings greener
New York City will introduce new zoning proposals next month that would make it easier for building owners to add features that will make their properties more sustainable.
| Nov 18, 2011
AGC offers webinar on Davis-Bacon compliance
Webinar to be held in two sessions, Dec. 7 and 8 from 2:00-3:30 p.m. EST.
| Nov 18, 2011
New green construction code may help push LEED standards higher
The International Green Construction Code (IgCC) is expected to set a floor for building standards and may create the opportunity for LEED certifications to push toward higher ceilings.
| Nov 18, 2011
New OSHA fall safety rule could save contractors money on insurance premiums
The new Occupational Safety and Health Administration rule requiring employers operating in the residential construction industry to use the same methods of fall protection that historically have been used in the commercial construction industry could save them money.
| Nov 18, 2011
Some believe new Austin building code will help mom and pop shops
Austin, Texas has proposed building codes that require wider sidewalks and call for buildings to be closer to sidewalks along a 3.5-mile stretch of highway.
| Nov 11, 2011
AIA: Engineered Brick + Masonry for Commercial Buildings
Earn 1.0 AIA/CES learning units by studying this article and successfully completing the online exam.
| Nov 10, 2011
WaterSense standard for weather-based irrigation controllers unveiled
The U.S. Environmental Protection Agency’s (EPA) WaterSense program has released a final specification for weather-based irrigation controllers—the first outdoor product category eligible to earn the WaterSense label.
| Nov 10, 2011
Advocate seeks noise reduction measures in California building codes
A former chief building inspector for San Francisco wants to enact building codes that would limit noise levels in restaurants and other spaces open to the public.
