According to Lodging Econometrics’ (LE) most recent construction pipeline trend report, at the close of the second quarter, the top five markets with the largest hotel construction pipelines are New York City, with 146 projects/25,232 rooms; Los Angeles with 135 projects/22,586 rooms; Dallas with 132 projects/16,183 rooms; Atlanta with 129 projects/17,845 rooms; and Nashville with 91 projects/12,703 rooms.
The five top markets with the most projects currently under construction are New York City with 111 projects/19,582 rooms, Atlanta with 39 projects/5,795 rooms, Los Angeles with 34 projects/5,771 rooms, Dallas with 30 projects/4,173 rooms, and Austin with 29 projects/3,768 rooms. These five markets collectively account for nearly 25% of the total number of rooms currently under construction in the U.S.
According to LE’s research, many hotel owners, developers, and management groups have used the operational downtime, caused by COVID-19’s impact on operating performance, as an opportunity to upgrade and renovate their hotels and/or redefine their hotels with a brand conversion. In the second quarter of 2021, LE recorded a combined renovation and conversion total of 1,135 active projects with 176,445 rooms for the U.S. The markets with the largest combined number of renovations and conversions are New York with 25 projects/7,957 rooms, Houston with 24 projects/3,549 rooms, Los Angeles with 24 projects/3,423 rooms, Chicago with 20 projects/2,803 rooms, and Miami with 19 projects/2,305 rooms.
Despite previous, and in some cases, ongoing delays in the pipeline, and with the recent changes to travel restrictions and the summer travel season upon us, many developers are feeling more optimistic about the future of the lodging industry as new hotel announcements continue. In the second quarter of 2021, Memphis recorded the highest count of new projects announced into the pipeline with 8 projects/927 rooms. Austin followed with 7 projects/1,084 rooms, then Atlanta with 6 projects/658 rooms, Washington DC with 5 projects/1,554 rooms, and Miami with 5 projects/499 rooms.
Hotels forecast to open in 2021 are led by New York City with 59 projects/8,583 rooms for a 7.2% supply increase, followed by Orlando with 22 projects/ 3,555 rooms for a 2.6% supply increase, Nashville with 22 projects/2,938 rooms for a 5.7% supply increase, Atlanta with 22 projects/2,930 rooms for a 2.7% supply increase, and then Houston with 22 projects/2,470 rooms for a 2.7% supply increase.
In 2022, New York is forecast to, again, top the list of new hotel openings with 46 projects/7,934 rooms while at this time, Dallas is anticipated to lead in 2023 with 35 projects/4,013 rooms expected to open.
Related Stories
Market Data | Apr 13, 2020
6 must reads for the AEC industry today: April 13, 2020
How prefab can enable the AEC industry to quickly create new hospital beds and Abu Dhabi launches a design competition focused on reducing urban heat island effect.
Market Data | Apr 10, 2020
5 must reads for the AEC industry today: April 10, 2020
Designing for the next generation of student life and a mass timber Ramada Hotel rises in British Columbia.
Market Data | Apr 9, 2020
7 must reads for the AEC industry today: April 9, 2020
Urine could be the key to building in outer space and how to turn a high school into a patient care center in just over two weeks.
Market Data | Apr 8, 2020
6 must reads for the AEC industry today: April 8, 2020
Stantec discusses how hospitals can adapt buildings to address worst-case scenarios and FXCollaborative Architects tells us why cities will survive the pandemic.
Market Data | Apr 7, 2020
7 must reads for the AEC industry today: April 7, 2020
Leo A Daly's Hotel2Hospital prototype takes shape, while the number of delayed projects reaches 2,550 in the U.S. amid coronavirus pandemic.
Market Data | Apr 3, 2020
COVID-19 cuts nonresidential construction employment in March
The construction unemployment rate was 6.9% in March, up 1.7 percentage points from the same time one year ago.
Market Data | Apr 1, 2020
February’s construction spending decline indicates what’s to come
Private nonresidential spending declined 2% on a monthly basis and is down 0.7% compared to February 2019.
Market Data | Mar 26, 2020
Architects taking action to support COVID-19 response
New AIA task force will offer insights for adapting buildings into healthcare facilities.
Market Data | Mar 26, 2020
Senate coronavirus relief bill's tax and lending provisions will help construction firms, but industry needs additional measures
Construction officials say measure will help firms cope with immediate cash flow crunch, but industry needs compensation for losses.
