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
University Buildings | Jul 24, 2020
A hybrid learning approach could redefine higher education
Universities reassess current assets to determine growth strategies.
Coronavirus | Jun 19, 2020
Experts address COVID-19's impact on nursing homes and schools on The Weekly
The June 18 episode of BD+C's "The Weekly" is available for viewing on demand.
Coronavirus | Jun 12, 2020
BD+C launches 'The Weekly,' a streaming program for the design and construction industry
The first episode, now available on demand, features experts from Robins & Morton, Gensler, and FMI on the current state of the AEC market.
Architects | Jun 8, 2020
Two Frank Lloyd Wright sites set to reopen for tours with enhanced health and safety protocols
The sites will reopen on Thursday, June 11.
Architects | May 28, 2020
Ghafari joins forces with Eview 360
Global architecture + engineering firm announces investment in experiential design agency.
Coronavirus | May 26, 2020
9 tips for mastering virtual public meetings during the COVID-19 pandemic
Mike Aziz, AIA, presents 9 tips for mastering virtual public meetings during the COVID-19 pandemic.
Architects | May 26, 2020
AIA honors exceptional designs with its COTE Top Ten Awards
Projects integrate high design with advanced performance in ten key areas.
Coronavirus | May 22, 2020
COVID-19: Healthcare designers look to the future of medical facilities in light of coronavirus pandemic
The American College of Healthcare Architects (ACHA) has released the key findings of a survey of its members revealing their insights on the future of healthcare architecture and the role of design in the context of the COVID-19 healthcare crisis.
Coronavirus | May 18, 2020
Infection control in office buildings: Preparing for re-occupancy amid the coronavirus
Making workplaces safer will require behavioral resolve nudged by design.
Data Centers | May 8, 2020
Data centers as a service: The next big opportunity for design teams
As data centers compete to process more data with lower latency, the AEC industry is ideally positioned to develop design standards that ensure long-term flexibility.
