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
| Jul 18, 2013
Top Federal Government Sector Engineering Firms [2013 Giants 300 Report]
Fluor, URS, AECOM top Building Design+Construction's 2013 ranking of the largest federal government sector engineering and engineering/architecture firms in the U.S.
| Jul 18, 2013
Top Federal Government Sector Architecture Firms [2013 Giants 300 Report]
HOK, SmithGroupJJR, PageSoutherlandPage top Building Design+Construction's 2013 ranking of the largest federal government sector architecture and architecture/engineering firms in the U.S.
| Jul 18, 2013
Top Government Sector Construction Firms [2013 Giants 300 Report]
Clark Group, Turner, PCL head Building Design+Construction's 2013 ranking of the largest government sector contractors and construction management firms in the U.S.
| Jul 18, 2013
Top Government Sector Engineering Firms [2013 Giants 300 Report]
Fluor, URS, AECOM top Building Design+Construction's 2013 ranking of the largest government sector engineering and engineering/architecture firms in the U.S.
| Jul 18, 2013
Top Government Sector Architecture Firms [2013 Giants 300 Report]
Stantec, HOK, HDR top Building Design+Construction's 2013 ranking of the largest government sector architecture and architecture/engineering firms in the U.S.
| Jul 18, 2013
Do third-corridor designs actually work for healthcare environments?
A recent study of a nursing unit assessed whether the space's third corridor does what it was intended to do: reduce noise and distraction to patients and nursing staff.
| Jul 18, 2013
LEGO takes on the iconic Sydney Opera House
This September, LEGO will expand its LEGO Creator Expert series with a 2,989-brick model of the iconic Sydney Opera House.
| Jul 17, 2013
Top Multifamily Construction Firms [2013 Giants 300 Report]
Lend Lease, Clark Group, Balfour Beatty top Building Design+Construction's 2013 ranking of the largest multifamily contractors and construction management firms in the United States.
| Jul 17, 2013
Top Multifamily Engineering Firms [2013 Giants 300 Report]
STV, URS, AECOM top Building Design+Construction's 2013 ranking of the largest multifamily engineering and engineering/architecture firms in the United States.
| Jul 17, 2013
Top Multifamily Architecture Firms [2013 Giants 300 Report]
IBI Group, Niles Bolton, Perkins Eastman top Building Design+Construction's 2013 ranking of the largest multifamily architecture and architecture/engineering firms in the United States.