According to Lodging Econometrics’ (LE’s) Construction Pipeline Trend Report for the United States, the total U.S. construction pipeline stands at 4,967 projects/622,218 rooms at the end of Q1‘21. While this is a slight dip in the pipeline year-over-year (YOY), it’s not unexpected given the lockdown and travel restrictions over the past year. Further, the pipeline shows no signs of great decline compared to what occurred during the ’08 and ’09 recession. Actually, projects and rooms in the early planning stage are up significant YOY (stats on this below).
Although hotel development may still be tepid in Q1, continued government support and the extension of programs has aided many businesses to get back on their feet as more and more are working to re-staff and re-open.
To date, nearly half of the eligible population is at least partially vaccinated, leading to an ease in requirements regarding group gatherings and indoor activities. Clinical trials of vaccines for children (ages 12 to 15) have been highly effective and look very promising for another strong vaccine wave. Additionally, the CDC has announced that, so long as people continue to take COVID-19 precautions, fully vaccinated people are now safe to travel domestically. Americans are becoming more optimistic about summer travel and are making plans now. As a result, operating performance is expected to soar late this spring, summer, and fall.
At the end of Q1 ’21, projects currently under construction stand at 1,311 projects/179,304 rooms. Projects under construction continue to move towards opening. Through year-end 2020, the U.S. opened 841 projects accounting for 97,959 rooms. A total of 229 hotels/27,528 rooms opened in the first quarter of 2021. As delayed Q4 opens are coming online, LE is forecasting 691 projects/81,866 rooms to open by the end of 2021, representing a 2.0% increase in new hotel supply. For all of 2022, LE is forecasting 963 projects/111,235 rooms to open and a 2.0% supply increase.
Projects scheduled to start construction in the next 12 months total 1,866 projects/215,911 rooms. Of the 1,866 projects scheduled to begin in the next 12 months, 26.8% of these belong to extended-stay brands, a segment of the industry that developers have become increasingly interested in over the last few years. Projects in the early planning stage stand at 1,790 projects/227,003 rooms, up 10% by projects and 14% by rooms YOY.
Additionally, there were a total of 1,198 projects/190,475 rooms under renovation or conversion in the U.S. during the first quarter. This is a small decline after seeing a slight increase at the end of 2020.
Related Stories
| Mar 25, 2014
World's tallest towers: Adrian Smith, Gordon Gill discuss designing Burj Khalifa, Kingdom Tower
The design duo discusses the founding of Adrian Smith + Gordon Gill Architects and the design of the next world's tallest, Kingdom Tower, which will top the Burj Khalifa by as much as a kilometer.
| Mar 24, 2014
Snøhetta unveils plans for serpentine mountain hotel
The winding hotel and apartment building will be built between the mountains and the sea in remote Glåpen, Norway.
| Mar 21, 2014
Forget wood skyscrapers - Check out these stunning bamboo high-rise concepts [slideshow]
The Singapore Bamboo Skyscraper competition invited design teams to explore the possibilities of using bamboo as the dominant material in a high-rise project for the Singapore skyline.
| Mar 20, 2014
Common EIFS failures, and how to prevent them
Poor workmanship, impact damage, building movement, and incompatible or unsound substrate are among the major culprits of EIFS problems.
| Mar 20, 2014
D.C. breaks ground on $2B mega waterfront development [slideshow]
When complete, the Wharf will feature approximately 3 million sf of new residential, office, hotel, retail, cultural, and public uses, including waterfront parks, promenades, piers, and docks.
| Mar 17, 2014
Rem Koolhaas explains China's plans for its 'ghost cities'
China's goal, according to Koolhaas, is to de-incentivize migration into already overcrowded cities.
| Mar 13, 2014
Austria's tallest tower shimmers with striking 'folded façade' [slideshow]
The 58-story DC Tower 1 is the first of two high-rises designed by Dominique Perrault Architecture for Vienna's skyline.
| Mar 12, 2014
London grows up: 236 tall buildings to be added to skyline in coming decade, says think tank
The vast majority of high-rise projects in the works are residential towers, which could help tackle the city's housing crisis, according to a new report by New London Architecture.
| Mar 12, 2014
14 new ideas for doors and door hardware
From a high-tech classroom lockdown system to an impact-resistant wide-stile door line, BD+C editors present a collection of door and door hardware innovations.
| Mar 5, 2014
5 tile design trends for 2014
Beveled, geometric, and high-tech patterns are among the hot ceramic tile trends, say tile design experts.