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
| Mar 9, 2012
2012 Giants 300 survey due Friday, April 13
See how your firm ranks among the AEC industry leaders.
| Mar 7, 2012
Firestone iPad app offers touch technology
Free app provides a preview of Firestone’s Roots to Rooftop Building Envelope Solution with an overview of all the products from ground and stormwater management solutions, to complete wall panel and commercial roofing system applications.
| Mar 7, 2012
LEO A DALY opens new office in Riyadh, Saudi Arabia
Jay N. Kline, Regional Manager – Saudi Arabia, to lead new office.
| Mar 7, 2012
Turner appointed Batson-Cook CFO and treasurer
Cecil G. Hood to continue in advisory role.
| Mar 7, 2012
Thornton Tomasetti names Dowdall VP of Kansas City office
Dowdall will be responsible for supporting the Property Loss Consulting, Building Performance and Building Sustainability practices nationally.
| Mar 7, 2012
LEO A DALY selected to design Minnesota Fallen Firefighters Memorial
The bronze, figurative sculpture of a firefighter rescuing a child, which is currently on display at the Minneapolis/St. Paul International Airport, is lit by natural light through a circular void in the monolith.
| Mar 7, 2012
Houlihan Lokey adds Steffen to Industrials Group
Steffen bolsters group with experience in the building materials and rorest product sectors.
| Mar 6, 2012
Country’s first Green House home for veterans completed
Residences at VA Danville to provide community-centered housing for military veterans.
| Mar 6, 2012
EwingCole completes first design-build project for the USMA
The second phase of the project, which includes the academic buildings and the lacrosse and football fields, was completed in January 2012.
