STR’s April 2016 Pipeline Report shows 506,000 rooms in 4,125 projects under contract in the U.S. The total represents a 14.6% increase in the number of rooms under contract compared with April 2015.
Under contract data includes projects in the construction, final planning, and planning stages, but does not include projects in the unconfirmed stage.
In the construction stage, the U.S. reported 161,014 rooms in 1,241 projects, a 28.3% increase in year-over-year comparisons.
Among the Chain Scale segments, Upscale (55,994 rooms in 407 hotels) accounted for the most rooms in construction, followed by Upper Midscale (52,934 rooms in 523 hotels).
“The Upscale and Upper Midscale segments combine to represent more than 67% of total construction activity in the U.S., with almost 109,000 rooms between the two,” said Bobby Bowers, STR’s Senior VP for Operations. “Looking further down the road, these two segments combine for almost 207,000 rooms in the two planning phases. That means these segments will likely continue to experience significant supply increases over the next few years. It will be very interesting to monitor the effect on select-service occupancy.”
The Economy segment reported the least contract and construction activity but the largest year-over-year increases in rooms under contract (+41.2% to 4,731 rooms) and in construction (+94.8% to 1,276 rooms).
“The increase in activity is coming across the board,” Bowers said.
Every segment with the exception of Luxury (+7.9%) reported a double-digit increase in construction activity when compared with last April. Every segment outside of Unaffiliated (+2.4%) reported a double-digit lift in under contract.
Related Stories
Hotel Facilities | Feb 13, 2018
6 trends shaping smart hotels
From real-time guest feedback to AI-driven hyper-personalization, the hotel of the future will emphasize service, convenience, authenticity, and just the right amount of technology.
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.
