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
| Oct 9, 2014
Cities get creative with stormwater management
Cities around the world are crafting stormwater management policies that include natural and manmade methods to store and absorb runoff to reduce flooding.
| Oct 2, 2014
Fannie Mae study says affordable rental units more energy efficient than market-rate units
Fannie Mae’s new report on energy usage in the multifamily sector found that affordable properties use 28% less energy per unit and are 29% smaller than market-rate properties.
| Oct 2, 2014
California Energy Commission launches code upgrade process
The California Energy Commission launched the upgrade process to Title 24, the state energy code, last month.
| Oct 2, 2014
Canals to mitigate flooding could be in Boston’s future
The Urban Land Institute held brainstorming sessions over the last several months involving more than 70 engineers, architects, and development and insurance specialists to examine how rising sea levels would affect four representative areas in and around Boston.
| Oct 2, 2014
Los Angeles reverses ban on high-rise slanted roofs and spires
Los Angeles reversed course last month on a regulation that had barred skyscrapers from having slanted roofs or spires.
| Sep 29, 2014
10 common deficiencies in aging healthcare facilities
VOA's Douglas King pinpoints the top issues that arise during healthcare facilities assessments, including missing fire/smoke dampers, out-of-place fire alarms, and poorly constructed doorways.
| Sep 29, 2014
Report finds links between office design, health and productivity
A new report from the World Green Building Council finds “overwhelming evidence” to support office design as a significant influencer of the health, wellbeing and productivity of staff.
| Sep 29, 2014
San Francisco office tower is first U.S. building to earn LEED Platinum v4 certification
One Sansome Street, San Francisco is the first building in the U.S. to achieve LEED Platinum v4 certification. The building is also only the second property worldwide to be awarded with v4 certification.
| Sep 29, 2014
Navy to begin BIM phased implementation in October
The U.S. Naval Facilities Engineering Command will begin its Building Information Management and Modeling (BIM) Phased Implementation Plan in October.
| Sep 18, 2014
GBCI to administer PEER certification for power grids and building projects
The Green Building Certification Institute (GBCI) will administer certification for the Performance Excellence in Electricity Renewal (PEER) program.