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
| Apr 23, 2014
Developers change gears at Atlantic Yards after high-rise modular proves difficult
At 32 stories, the B2 residential tower at Atlantic Yards has been widely lauded as a bellwether for modular construction. But only five floors have been completed in 18 months.
| Apr 23, 2014
Experimental bot transfers CAD plans onto construction sites
The Archibot is intended to take technical data and translate it into full-scale physical markings on construction sites.
| Apr 23, 2014
Mean and Green: Top 10 green building projects for 2014 [slideshow]
The American Institute of Architects' Committee on the Environment has selected the top ten examples of sustainable architecture and ecological design projects that protect and enhance the environment. Projects range from a project for Portland's homeless to public parks to a LEED Platinum campus center.
| Apr 23, 2014
Architecture Billings Index dips in March
The March ABI score was 48.8, down sharply from a mark of 50.7 in February. This score reflects a decrease in design services.
Sponsored | | Apr 23, 2014
Ridgewood High satisfies privacy, daylight and code requirements with fire rated glass
For a recent renovation of a stairwell and exit corridors at Ridgewood High School in Norridge, Ill., the design team specified SuperLite II-XL 60 in GPX Framing for its optical clarity, storefront-like appearance, and high STC ratings.
| Apr 22, 2014
Transit-friendly apartment building now under construction
The new $44 million community is situated on eight acres, directly adjacent to the local Park-n-Ride, and a quick walk from a nearby light rail station.
| Apr 22, 2014
Bright and bustling: Grimshaw reveals plans for the Istanbul Grand Airport [slideshow]
In partnership with the Nordic Office of Architecture and Haptic Architects, Grimshaw Architects has revealed its plans for the terminal of what will be one of the world's busiest airports. The terminal is expected to serve 150 million passengers per year.
| Apr 21, 2014
10 design-build best practices
Design-build requires more than a good contract and appropriate risk allocation, says the DBIA. Everyone from the owner to the subcontractors must understand the process, the expectations, and fully engage in the collaboration.
| Apr 18, 2014
Multi-level design elevates Bulgarian Children's Museum [slideshow]
Embodying the theme “little mountains,” the 35,000-sf museum will be located in a former college laboratory building in the Studenski-grad university precinct.
| Apr 17, 2014
Online mapping tool helps teams determine multifamily project tax credit eligibility
Accounting and advisory firm Baker Tilly has launched a new, interactive online mapping tool that helps users determine if a business or development project may qualify for the New Markets Tax Credit or Low-Income Housing Tax Credit program.
