In the recent report released by Lodging Econometrics (LE), at the close of the second quarter of 2020, the top five U.S. markets with the largest total hotel construction pipelines are Los Angeles, leading for the fourth consecutive quarter, with 163 projects/27,415 rooms; followed by Dallas with 158 projects/19,314 rooms; New York City with 151 projects/26,302 rooms; Atlanta with 135 projects/18,634 rooms; and Houston with 122 projects/12,486 rooms. Despite these top five markets being located in states that have been heavily impacted by COVID-19, combined, they still account for 15% of the rooms in the total U.S. pipeline and, with the exception of Houston, have pipelines that remain steady and primarily unchanged quarter-over-quarter.
New York City continues to have the greatest number of projects under construction, with 106 projects/18,354 rooms. Los Angeles follows with 48 projects/8,070 rooms, and then Atlanta with 48 projects/6,604 rooms, Dallas with 46 projects/5,344 rooms, and Nashville with 37 projects/6,597 rooms. These five markets collectively account for nearly 20% of the total number of rooms currently under construction in the U.S.
According to LE’s research, many hotel owners, who have capital on hand, are taking this opportunity of decreased demand to upgrade and renovate their hotels or redefine their hotels with a brand conversion. In the second quarter of 2020, LE recorded a combined renovation and conversion total of 1,276 active projects with 217,865 rooms for the U.S. The markets with the largest combined number of renovations and conversions is Chicago with 28 projects/4,717 rooms, Los Angeles with 26 projects/4,548 rooms, New York City with 22 projects/8,817 rooms, Washington DC with 21 projects/4,850 rooms, and Atlanta with 19 projects/3,273 rooms.
Despite the impact COVID-19 has had on operating performance, development in the lodging industry continues. In the first half of 2020, Dallas recorded the highest count of new projects announced into the pipeline with 18 projects/2,018 rooms. Washington DC followed with 14 projects/1,978 rooms, then Phoenix with 13 projects/1,397 rooms, Miami with 10 projects/2,472 rooms, and the Florida Panhandle with 9 projects/1,178 rooms.
Related Stories
Market Data | May 18, 2021
Grumman|Butkus Associates publishes 2020 edition of Hospital Benchmarking Survey
The report examines electricity, fossil fuel, water/sewer, and carbon footprint.
Market Data | May 13, 2021
Proliferating materials price increases and supply chain disruptions squeeze contractors and threaten to undermine economic recovery
Producer price index data for April shows wide variety of materials with double-digit price increases.
Market Data | May 7, 2021
Construction employment stalls in April
Soaring costs, supply-chain challenges, and workforce shortages undermine industry's recovery.
Market Data | May 4, 2021
Nonresidential construction outlays drop in March for fourth-straight month
Weak demand, supply-chain woes make further declines likely.
Market Data | May 3, 2021
Nonresidential construction spending decreases 1.1% in March
Spending was down on a monthly basis in 11 of the 16 nonresidential subcategories.
Market Data | Apr 30, 2021
New York City market continues to lead the U.S. Construction Pipeline
New York City has the greatest number of projects under construction with 110 projects/19,457 rooms.
Market Data | Apr 29, 2021
U.S. Hotel Construction pipeline beings 2021 with 4,967 projects/622,218 rooms at Q1 close
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.
Market Data | Apr 28, 2021
Construction employment declines in 203 metro areas from March 2020 to March 2021
The decline occurs despite homebuilding boom and improving economy.
Market Data | Apr 20, 2021
The pandemic moves subs and vendors closer to technology
Consigli’s latest market outlook identifies building products that are high risk for future price increases.
Market Data | Apr 20, 2021
Demand for design services continues to rapidly escalate
AIA’s ABI score for March rose to 55.6 compared to 53.3 in February.