At the close of 2019, analysts at Lodging Econometrics (LE) report that the total U.S. construction pipeline continues to grow with 5,748 projects/708,898 rooms, up 4% by projects and 6% by rooms year-over-year (YOY). The pipeline has now completed its eighth consecutive year of growth. These robust year-end counts are a mere 135 projects/76,649 rooms shy of the all-time high of 5,883 projects/785,547 rooms reached in the second quarter of 2008.
Projects under construction continue to rise reaching an all-time high of 1,768 projects with 237,362 rooms, up 7% by projects and 10% by rooms, YOY. Projects scheduled to start construction in the next 12 months stand at 2,283 projects/265,161 rooms. Projects in the early planning stage are at 1,697 projects/206,375 rooms.
In 2019, the U.S. had 1,017 new hotels/118,674 rooms open, a 2.2% growth in new supply, bringing the total U.S. census to 57,903 hotels/5,486,909 rooms. The LE forecast for new hotel openings in 2020 anticipates a 2.3% supply growth rate with 1,127 new hotels/127,896 rooms expected to open. In 2021, the forecast for new hotel openings rises slightly to 1,162 new hotels/135,228 rooms, a 2.4% growth rate.
The hotel construction pipeline outlook in the U.S. should continue to remain optimistic through 2020 and through the early part of the new decade. The financial markets are strong, a partial trade agreement between the U.S. and China has been reached, and interest rates could very well go unchanged in 2020. Overall, the economy is in a good place, and the concerns of a possible recession have eased. Lenders continue to be cautious, but lending at attractive rates is still accessible to developers and should continue to drive development.
Related Stories
Market Data | Mar 23, 2020
Coronavirus will reshape UAE construction
The impact of the virus has been felt in the UAE, where precautionary measures have been implemented to combat the spread of the virus through social distancing.
Coronavirus | Mar 20, 2020
Pandemic has halted or delayed projects for 28% of contractors
Coronavirus-caused slowdown contrasts with January figures showing a majority of metro areas added construction jobs; Officials note New infrastructure funding and paid family leave fixes are needed.
Market Data | Mar 17, 2020
Construction spending to grow modestly in 2020, predicts JLL’s annual outlook
But the coronavirus has made economic forecasting perilous.
Market Data | Mar 16, 2020
Grumman/Butkus Associates publishes 2019 edition of Hospital Benchmarking Survey
Report examines electricity, fossil fuel, water/sewer, and carbon footprint.
Market Data | Mar 12, 2020
New study from FMI and Autodesk finds construction organizations with the highest levels of trust perform twice as well on crucial business metrics
Higher levels of trust within organizations and across project teams correlate with increased profit margins, employee retention and repeat business that can all add up to millions of dollars of profitability annually.
Market Data | Mar 11, 2020
The global hotel construction pipeline hits record high at 2019 year-end
Projects currently under construction stand at a record 991 projects with 224,354 rooms.
Market Data | Mar 6, 2020
Construction employment increases by 43,000 in February and 223,000 over 12 months
Average hourly earnings in construction top private sector average by 9.9% as construction firms continue to boost pay and benefits in effort to attract and retain qualified hourly craft workers.
Market Data | Mar 4, 2020
Nonresidential construction spending attains all-time high in January
Private nonresidential spending rose 0.8% on a monthly basis and is up 0.5% compared to the same time last year.
Market Data | Feb 21, 2020
Construction contractor confidence remains steady
70% of contractors expect their sales to increase over the first half of 2020.
Market Data | Feb 20, 2020
U.S. multifamily market gains despite seasonal lull
The economy’s steady growth buoys prospects for continued strong performance.
