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
| Feb 2, 2012
Call for Entries: 2012 Building Team Awards. Deadline March 2, 2012
Winning projects will be featured in the May issue of BD+C.
| Feb 2, 2012
VLK Architects selected for new Cypress, Texas elementary school
The Bridgeland Elementary School will be a new prototype school for the District. Designed to meet the requirements of The Collaborative for High Performance Schools.
| Feb 2, 2012
Mortenson Construction to build 2.4 MW solar project in North Carolina
Located on a 12 acre site in the Sandhills region, the 2.4 megawatt (MW) system is expected to generate approximately 3.5 million kilowatt hours (kWhs) of clean electricity on an annual basis.
| Feb 2, 2012
Shawmut Design and Construction launches sports venues division
Expansion caps year of growth for Shawmut.
| Feb 2, 2012
Fire rated glazing helps historic university preserve its past
When the University embarked on its first major addition since the opening of Hutchins Hall in 1933, preserving the Collegiate Gothic-style architecture was of utmost importance.
| Feb 2, 2012
Delk joins Gilbane Building Co.
Delk to focus on healthcare construction programs and highly complex higher education facilities for Gilbane Building Company’s Southwest region.
| Feb 2, 2012
Next phase of construction begins on Scripps Prebys Cardiovascular Institute
$456 million Institute will be comprehensive heart center for 21st Century.
| Feb 1, 2012
Increase notched in construction jobs, but unemployment rate still at 16%
AGC officials said that construction employment likely benefited from unseasonably warm weather across much of the country that extended the building season.
| Feb 1, 2012
Replacement windows eliminate weak link in the building envelope
Replacement or retrofit can help keep energy costs from going out the window.
| Feb 1, 2012
‘Augmented reality’ comes to the job site
A new software tool derived from virtual reality is helping Building Teams use the power of BIM models more effectively.