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
| Aug 7, 2012
Pioneering revival
Financial setbacks didn’t stop this Building Team from transforming the country’s first women’s medical school into a new home for college students.
| Aug 7, 2012
Shedding light on the arts
Renovating Pietro Belluschi’s Juilliard School opens the once-cloistered institution to its Upper West Side community.
| Aug 7, 2012
How to win more state and local government projects
With a huge building stock at their disposal, state and local governments can be attractive clients, especially in these difficult economic times.
| Aug 7, 2012
McCarthy tops out LEED Platinum-designed UCSD Health Sciences Biomedical Research Facility
New laboratory will enable UCSD to recruit and accommodate preeminent faculty.
| Aug 7, 2012
Pankow names Lum new CEO
Lum joined Pankow in 1980 in Hawaii and has held leadership roles in Pankow’s Honolulu and Northern California regional offices and was appointed president of the firm in 2009.
| Aug 7, 2012
Suffolk Construction builds new Boston Tea Party Ships & Museum
Construction management firm links history with the future by building museum using state-of-the-art virtual models and BIM technologies.
| Aug 7, 2012
Essex Builders to build church in Somerville, Mass.
The project’s design documents were prepared by Boston Bay Architects and reflect the church’s mission to serve the broader community as well as worship.
| Aug 6, 2012
Johnson Controls GWS appoints Genemaras as COO
Genemaras brings a wealth of experience in international business operations.
| Aug 6, 2012
Welton promoted to principal in Thornton Tomasetti’s Denver office
Welton serves as the manager of the firm’s Denver office and has more than 30 years of structural engineering experience across a range of project types including sports, commercial and residential.
| Aug 6, 2012
Kibby has joins the Harmon team
Kibby has over 24 years of experience in the glazing industry, coming to Harmon from Architectural Wall Systems where he worked in business development.
