The hotel construction pipeline hit a five-year high in the third quarter, clocking in at 3,516 projects and 443,936 rooms, Lodging Econometrics reports.
For four consecutive quarters, the pipeline has posted double-digit year-over-year increases in terms of both projects and rooms. In Q3, year-over-year increases for projects and rooms are up 25% and 24%, respectively.
Conditions are currently favorable for developers, according to the report. This year is the fifth consecutive year that the growth of guest room demand has exceeded supply growth; supply growth has been 1.3% for four consecutive years.
Making the outlook even rosier for developers: occupancy will reach a 17-year high by the end of 2014. Average rate and revenue per available room will also reach record highs at year-end, according to the report.
Other report highlights:
• 23 of the top 25 markets are running above the nation’s average occupancy rate of 65.9%
• New York, with 176 projects and 29,775 rooms, has the largest pipeline in the country
• Houston, Washington, D.C., Los Angeles, and Miami are the next largest pipelines
• The brand at the head of the pipeline is Marriott International, followed by Hilton and Intecontinental
Read more or order a full report here.
Related Stories
Architects | Dec 17, 2021
What I wish I had learned in architecture school
Bradford Perkins, FAIA, offers a 3-point plan for upgrading architecture education.
Urban Planning | Dec 15, 2021
EV is the bridge to transit’s AV revolution—and now is the time to start building it
Thinking holistically about a technology-enabled customer experience will make transit a mode of choice for more people.
Sports and Recreational Facilities | Dec 15, 2021
Trends in sports stadium construction, with Turner Construction's Dewey Newton
Turner Construction's Dewey Newton discusses trends in sports stadium renovation and construction with BD+C's John Caulfield. Newton is a Senior Vice President who heads up Turner Construction’s Sports Group.
Healthcare Facilities | Dec 15, 2021
COVID-19 has altered the speed and design of healthcare projects, perhaps irrevocably
Healthcare clients want their projects up and running quicker, a task made more complicated by the shortage of skilled labor in many markets.
Healthcare Facilities | Dec 15, 2021
MEP design considerations for rural hospitals
Rural hospitals present unique opportunities and challenges for healthcare facility operators. Oftentimes, the infrastructure and building systems have not been updated for years and require significant improvements in order to meet today’s modern medical demands. Additionally, as these smaller, more remote hospitals are acquired by larger regional and national healthcare systems, the first step by new ownership is often to update and rehabilitate the building. But how can this be done thoughtfully, economically, and efficiently in ways that allow the engineering and facility staff to adapt to the changes? And how can the updates accurately reflect the specific needs of rural communities and the afflictions with which these areas most commonly face?
Architects | Dec 13, 2021
Dan Hart, FAIA, inaugurated AIA 2022 President
Dan Hart will be the AIA's 98th President.
Architects | Dec 13, 2021
MASS Design Group receives 2022 AIA Architecture Firm Award
The annual AIA Architecture Firm Award is the highest honor the AIA bestows on an architecture practice.
Architects | Dec 13, 2021
2022 AIA Gold Medal awarded to Angela Brooks and Lawrence Scarpa
The Gold Medal honors an individual or pair whose significant body of work has had a lasting influence on the theory and practice of architecture.
K-12 Schools | Dec 10, 2021
Trends in K-12 school design, with Dan Boggio and Melissa Turnbaugh of PBK
Dan Boggio and Melissa Turnbaugh of PBK, the largest K-12 design firm in the U.S., discuss the favorable market conditions and the latest trends in K-12 school design with BD+C's Rob Cassidy.
Architects | Dec 9, 2021
Hoffmann Architects wins Connecticut American Institute of Architects Justice, Equity, Diversity & Inclusion Award
The AIA Connecticut J.E.D.I. Challenge, launched in November 2020, offers member firms the opportunity to commit to actions in each of the Challenge areas.