As seen in the Q1 2024 U.S. Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE), at the end of the first quarter, there are 6,065 projects with 702,990 rooms in the pipeline. This new all-time high represents a 9% year-over-year (YOY) increase in projects and a 7% YOY increase in rooms compared to last year.
The details can be seen directly within the stages of the pipeline, which all saw YOY growth in Q1. Presently, there are 1,144 projects comprising 141,336 rooms under construction, marking a 9% increase in projects and a 1% increase in rooms YOY. Projects slated to start construction in the next 12 months total 2,259 projects with 260,968 rooms, reflecting a 10% rise in projects and an 8% increase in rooms YOY.
Notably, both projects and room counts in the early planning stage increased by 9% YOY, reaching record-high figures of 2,662 projects and 300,686 rooms, respectively. Of all the projects in the pipeline, a little over half of them are concentrated within the upscale, upper-midscale, and midscale chain scales. In Q1, the upper midscale and midscale segments hit record-high project and room counts. The luxury chain scale also reached a record-high project total in Q1.
The latest data from LE also highlights the dominance of extended-stay brands in the pipeline at Q1, a segment that developers have increasingly favored in recent years. These brands now account for 37% of the total projects under construction, 41% of projects scheduled to begin within the next 12 months, and 39% of projects in the early planning stage. Sixty-three percent of the extended stay projects in the pipeline are branded with brands within the middle tier extended stay segment.
Renovation and brand conversion activities in the U.S. have also seen significant growth, reaching record-high combined totals of 2,041 projects and 266,405 rooms. Brand conversions, in particular, have hit a new record-high of 1,235 projects with 114,680 rooms, growing 14% by projects YOY, while announced renovations at Q1 stand at 806 projects and 151,725 rooms. LE analysts anticipate this robust conversion and renovation activity to continue throughout 2024.
In terms of new hotel openings, the first quarter saw the opening of 114 new hotels with 15,506 rooms in the U.S. Over half of these opens, 72 hotels/8,269 rooms, were in suburban locations, and 60 hotels/10,036 rooms (or 53%/65%) of newly opened hotels were located within the top 50 markets. With a record number of projects in early planning and an increasing number of projects scheduled to start in the next 12 months, LE analysts project modest growth in new hotel openings through 2024.
The LE forecast for the remainder of 2024 includes the opening of another 547 projects with 60,483 rooms, totaling 661 new hotels with 75,989 rooms and representing a 1.3% increase in new hotel supply by year-end. Looking ahead to 2025, LE analysts anticipate an additional 790 new hotels with 85,561 rooms to open in the U.S., resulting in a 1.5% supply increase.
Related Stories
Casinos | Jan 30, 2016
Boston ends its opposition to a casino, Wynn to build $1.7B resort
A judge’s ruling last year paved the way for Wynn Resorts to begin construction on a 33-acre gambling palace in Everett, Mass.
Resort Design | Jan 26, 2016
Atlantis planning to build the world’s most expensive resort in Hawaii
The project was first announced in 2005 but has progressed little since.
Hotel Facilities | Jan 19, 2016
8 trends sparking the hospitality sector
Hotels and restaurants are branching out to attract more customers—and hold onto them longer.
| Jan 14, 2016
How to succeed with EIFS: exterior insulation and finish systems
This AIA CES Discovery course discusses the six elements of an EIFS wall assembly; common EIFS failures and how to prevent them; and EIFS and sustainability.
Hotel Facilities | Jan 13, 2016
Hotel construction should remain strong through 2017
More than 100,000 rooms could be delivered this year alone.
Urban Planning | Jan 4, 2016
The next boomtown? Construction and redevelopment sizzle in San Diego
The city's emission-reduction plan could drive influx into downtown
Hotel Facilities | Dec 14, 2015
Greater Fort Lauderdale is enjoying a building boom
This business-friendly South Florida market has several large hotel and multifamily projects in construction.
Greenbuild Report | Dec 14, 2015
Sensible sustainability: The new standard for hotels
In October 2008, The Proximity, a 147-room hotel in Greensboro, N.C., became the first LEED Platinum–certified hotel in the U.S. Since then, only two other hotels have earned LEED Platinum.
Multifamily Housing | Dec 7, 2015
Are long-term apartment rentals Airbnb’s next target?
Some developers are thinking about that possibility, says one West Coast real estate consultant.
Architects | Oct 27, 2015
Top 10 tile trends for 2016
Supersized tile and 3D walls are among the trending tile design themes seen at Cersaie, an exhibition of ceramic tile and bathroom furnishings held in Bologna, Italy in October.
