In the third quarter of 2018, analysts at Lodging Econometrics (LE) report that the top five markets with the largest total hotel construction pipelines are: New York City with 170 projects/29,630 rooms; Dallas with 157 projects/18,954 rooms; Houston with 150 projects/16,473 rooms; Los Angeles with 141 projects/24,129 rooms; and Nashville with 115 projects/15,179 rooms.
Projects already under construction and those scheduled to start construction in the next 12 months, combined, have a total of 3,782 projects/213,798 rooms and are at cyclical highs. Markets with the greatest number of projects already in the ground and those scheduled to start construction in the next 12 months are New York with 145 projects/24,675 rooms, Dallas with 112 projects/13,854 rooms, Houston with 103 projects/11,562 rooms, Los Angeles with 92 projects/14,249 rooms, and Nashville with 88 projects/12,322 rooms.
In the third quarter, Los Angeles has the highest number of new projects announced into the pipeline with 22 projects/6,457 rooms. Detroit follows Los Angeles with 18 projects/1,937 rooms, Dallas with 14 projects/1,529 rooms, New York City with 12 projects/1,857 rooms, and then Atlanta with 12 projects/1,354 rooms.
Reflecting the strong cyclical highs in the pipeline, LE’s forecast for new hotel openings will continue to rise in 2018-2020. In 2018, New York City tops the list with 29 new hotels expected to open/5,351 rooms, Dallas with 29 projects/3,187 rooms, Houston with 27 projects/3,259 rooms, Nashville with 22 projects/3,018 rooms, and Los Angeles with 12 projects/2,152 rooms. In the 2019 forecast, New York continues to lead with the highest number of new hotels expected to open with 59 projects/8,964 rooms followed by Houston with 31 projects/3,098 rooms and Dallas with 30 projects/3,379 rooms. In 2020, Dallas is forecast to take the lead for new hotel openings with 41 projects/4,809 rooms expected to open, followed by New York with 36 projects/5,978 rooms, and Los Angeles with 33 projects/4,292 rooms expected to open.
With the exception of New York City and Houston, the other markets mentioned in the opening show that supply growth has begun to surpass demand. The variances in 2018 year-to-date are small but are certain to widen in the next two years, given the strength of these pipeline in the markets.
All in all, 10 of the top 25 markets show supply growth minimally exceeding demand growth in 2018.
Related Stories
Market Data | Nov 29, 2016
It’s not just traditional infrastructure that requires investment
A national survey finds strong support for essential community buildings.
Industry Research | Nov 28, 2016
Building America: The Merit Shop Scorecard
ABC releases state rankings on policies affecting construction industry.
Multifamily Housing | Nov 28, 2016
Axiometrics predicts apartment deliveries will peak by mid 2017
New York is projected to lead the nation next year, thanks to construction delays in 2016
Market Data | Nov 22, 2016
Construction activity will slow next year: JLL
Risk, labor, and technology are impacting what gets built.
Market Data | Nov 17, 2016
Architecture Billings Index rebounds after two down months
Decline in new design contracts suggests volatility in design activity to persist.
Market Data | Nov 11, 2016
Brand marketing: Why the B2B world needs to embrace consumers
The relevance of brand recognition has always been debatable in the B2B universe. With notable exceptions like BASF, few manufacturers or industry groups see value in generating top-of-mind awareness for their products and services with consumers.
Industry Research | Nov 8, 2016
Austin, Texas wins ‘Top City’ in the Emerging Trends in Real Estate outlook
Austin was followed on the list by Dallas/Fort Worth, Texas and Portland, Ore.
Market Data | Nov 2, 2016
Nonresidential construction spending down in September, but August data upwardly revised
The government revised the August nonresidential construction spending estimate from $686.6 billion to $696.6 billion.
Market Data | Oct 31, 2016
Nonresidential fixed investment expands again during solid third quarter
The acceleration in real GDP growth was driven by a combination of factors, including an upturn in exports, a smaller decrease in state and local government spending and an upturn in federal government spending, says ABC Chief Economist Anirban Basu.
Market Data | Oct 28, 2016
U.S. construction solid and stable in Q3 of 2016; Presidential election seen as influence on industry for 2017
Rider Levett Bucknall’s Third Quarter 2016 USA Construction Cost Report puts the complete spectrum of construction sectors and markets in perspective as it assesses the current state of the industry.
