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
Industry Research | Nov 30, 2016
Multifamily millennials: Here is what millennial renters want in 2017
It’s all about technology and convenience when it comes to the things millennial renters value most in a multifamily facility.
Market Data | Nov 29, 2016
It’s not just traditional infrastructure that requires investment
A national survey finds strong support for essential community buildings.
Industry Research | Nov 28, 2016
Building America: The Merit Shop Scorecard
ABC releases state rankings on policies affecting construction industry.
Multifamily Housing | Nov 28, 2016
Axiometrics predicts apartment deliveries will peak by mid 2017
New York is projected to lead the nation next year, thanks to construction delays in 2016
Market Data | Nov 22, 2016
Construction activity will slow next year: JLL
Risk, labor, and technology are impacting what gets built.
Market Data | Nov 17, 2016
Architecture Billings Index rebounds after two down months
Decline in new design contracts suggests volatility in design activity to persist.
Market Data | Nov 11, 2016
Brand marketing: Why the B2B world needs to embrace consumers
The relevance of brand recognition has always been debatable in the B2B universe. With notable exceptions like BASF, few manufacturers or industry groups see value in generating top-of-mind awareness for their products and services with consumers.
Industry Research | Nov 8, 2016
Austin, Texas wins ‘Top City’ in the Emerging Trends in Real Estate outlook
Austin was followed on the list by Dallas/Fort Worth, Texas and Portland, Ore.
Market Data | Nov 2, 2016
Nonresidential construction spending down in September, but August data upwardly revised
The government revised the August nonresidential construction spending estimate from $686.6 billion to $696.6 billion.
Market Data | Oct 31, 2016
Nonresidential fixed investment expands again during solid third quarter
The acceleration in real GDP growth was driven by a combination of factors, including an upturn in exports, a smaller decrease in state and local government spending and an upturn in federal government spending, says ABC Chief Economist Anirban Basu.
