In its fall report, buoyed by a steady consumer-driven economy, analysts at Lodging Econometrics (LE) reported that the total U.S. construction pipeline stood at 5,704 projects/700,496 rooms, up 6% by projects and 8% by rooms year-over-year (YOY). Pipeline totals continue to climb closer to the all-time high of 5,883 projects/785,547 rooms reached in the second quarter of 2008, and are just 179 projects shy.
In its eighth consecutive quarter of growth, projects currently under construction stand at 1,729 projects/235,278 rooms, the highest count recorded since the second quarter of 2008. Projects scheduled to start construction in the next 12 months, currently 44% of all pipeline projects, was 2,479 projects/286,125 rooms, very close to the all-time high set in 2009. It’s up a whopping 16% in projects and 13% in rooms, YOY. Projects in the early planning stage stand at 1,496 projects/179,093 rooms.
But as a result of declines in commercial investment brought about by the indecision caused by the global slowdown and the prolonged tariff imbroglio, this is the second quarter in a row where construction starts have declined, an indicator that pipelines growth may top out in late 2020/2021.
Through the end of the third quarter, 704 new hotels with 81,111 rooms opened across the U.S. with another 299 projects/33,059 rooms expected to open by year-end. New hotel openings in the LE forecast for 2020 stand at 1,112 new hotels/122,702 rooms followed by 1,126 new hotels/130,447 rooms scheduled to open in 2021.
This quarter is the first time this cycle where supply growth at 2% has risen and drawn even with demand growth which has fallen to 2%. In 2019, 16 of the top 25 markets show occupancy declines YOY while 11 markets show RevPAR declines.
Related Stories
Codes and Standards | Jul 10, 2017
New mass plywood panel project moves ahead with federal grant
New material is substitute for concrete and steel in multi-story projects.
Codes and Standards | Jul 6, 2017
Trump ups ante on apprenticeships, gives private sector more room to design them
Initiative aimed at alleviating construction industry worker shortage.
Codes and Standards | Jul 6, 2017
Flawed modeling to blame for green buildings failure to live up to hype on energy efficiency
Explains energy performance gap from expected savings to actual savings.
Codes and Standards | Jul 5, 2017
Research study examines tall timber buildings worldwide
Industry group developing criteria for categorizing wide range of construction approaches to tall timber buildings.
Codes and Standards | Jun 30, 2017
AAMA releases new document on aluminum fenestration and energy efficiency
The free download addresses entrances, storefront framing, curtain walls, windows and skylight fenestration systems.
Codes and Standards | Jun 29, 2017
Fire codes prevent cladding used on Grenfell Tower from being used in U.S.
Reports suggest an extra $6,300 for fire-resistant cladding could have prevented the tragedy.
Codes and Standards | Jun 28, 2017
Minimum Design Loads and Associated Criteria for Buildings and Other Structures, Standards ASCE/SEI 7-16, has been updated
The document is used for determining design loads including dead, live, soil, flood, tsunami, snow, rain, atmospheric ice, earthquake, wind, and fire.
Codes and Standards | Jun 27, 2017
Cold-formed steel framing engineering guide for building projects released
Better sound attenuation for subfloors and exterior continuous insulation are among the matters addressed.
Codes and Standards | Jun 26, 2017
L.A.’s new ordinance requires energy and water efficiency benchmarking
Structures 20,000 sf and larger must demonstrate steps to boost efficiency.
Codes and Standards | Jun 21, 2017
World Green Building Council: All buildings must be net zero by 2050 to avert 2°C rise
Building efficiency essential to tempering global climate change.