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 | Oct 30, 2017
City 2050: What will your city look like in 2050?
What do we think the future will look like 30 years or so from now? And what will City: 2050 be like?
Architects | Oct 25, 2017
Mason & Hanger appoints Ben Lilly as its new president
The firm expects to continue mining growth opportunities with its federal agency clients.
Healthcare Facilities | Oct 25, 2017
Creating child-friendly healthcare spaces: Five goals for success
Children often accompany parents or grandparents in medical settings; what can we do to address their unique needs?
Giants 400 | Oct 24, 2017
Top 160 reconstruction architecture firms
Gensler, Jacobs, and Stantec top BD+C’s ranking of the nation’s largest reconstruction sector architecture and AE firms, as reported in the 2017 Giants 300 Report.
Giants 400 | Oct 20, 2017
Top 40 sports architecture firms
Populous, HOK, and HKS top BD+C’s ranking of the nation’s largest sports sector architecture and AE firms, as reported in the 2017 Giants 300 Report.
Giants 400 | Oct 19, 2017
Race for talent drives office designs
Is the shift toward attracting younger workers too much or not enough?
Sponsored | Designers | Oct 18, 2017
Universal design principles: Part 2
The CDC targets the bathroom as the most dangerous room in the house. Architects can use principles of Universal Design (UD) to reduce these hazards.
Giants 400 | Oct 17, 2017
Top 110 office architecture firms
Gensler, Jacobs, and HOK top BD+C’s ranking of the nation’s largest office sector architecture and AE firms, as reported in the 2017 Giants 300 Report.
Giants 400 | Oct 16, 2017
Data center market forecast: Clearly cloudy
Look for mission-critical construction to double in the next few years.
Resiliency | Oct 13, 2017
Resiliency takes center stage in new projects around the country
Projects like these, where resilience is central to their design and construction, are becoming more commonplace.
