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
University Buildings | May 30, 2015
Texas senate approves $3 billion in bonds for university construction
For the first time in nearly a decade, Texas universities could soon have some state money for construction.
Multifamily Housing | May 30, 2015
Energy Department releases resources to assess building energy benchmarking policies, programs
The new handbook demonstrates methodologies using real data from New York City.
Codes and Standards | May 27, 2015
Construction industry concerns with ‘Waters of the U.S.’ rule remain
EPA and Corps of Engineers rule may lead to a longer, more expensive permitting process
Codes and Standards | May 22, 2015
Rapid growth for environmental insurance in construction industry
The U.S. Environmental Protection Agency is paying closer attention to intrusion of potentially harmful vapors into commercial and residential buildings.
Codes and Standards | May 22, 2015
Roof collapse at Minnesota water park highlights failure to enforce codes
Rural areas say they can’t afford to enforce state-adopted building code.
Codes and Standards | May 22, 2015
U.S. House scuttles EPA plan to expand definition of waters in Clean Water Act
Construction industry officials said the rule would hamper developers, cost jobs.
Codes and Standards | May 22, 2015
First EPD covering PVC water and wastewater piping published
Benchmarks impacts of seven PVC pipe products across their life cycles.
Office Buildings | May 18, 2015
New ASHRAE standard offers test method to determine heat gain of office equipment
The standard will aid engineers in configuring cooling systems in office buildings.
Codes and Standards | May 7, 2015
Widespread damage from Nepal earthquake due to poor implementation of building code
Nepal’s code author says destruction was ‘inevitable.’
Codes and Standards | May 7, 2015
Lavish residential skyscrapers prompt concern over shadows
New York, San Francisco, Washington, D.C., and Boston among cities grappling with height regulations.
