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
| Dec 10, 2013
Whistleblowers can now file complaints online with OSHA
Whistleblowers covered by one of 22 statutes administered by the Occupational Safety and Health Administration (OSHA) now will be able to file complaints online.
| Dec 4, 2013
Five U.S. cities leading on climate change initiatives
Houston, Salt Lake City, Miami, New York, and Los Angeles are five cities that are leading the way on preparing for climate change and extreme weather, according to a Center for American Progress report.
| Dec 4, 2013
Philadelphia City Council mulling bill requiring ID cards for construction workers
The Philadelphia City Council has held a series of hearings on a bill aimed at boosting the city's safety regulations in the wake of a deadly building collapse earlier this year.
| Dec 4, 2013
Changes completed on 2015 IECC provisions
The 2015 International Energy Conservation Code (IECC)—the code that serves as the model for states’ codes—has undergone final changes.
| Dec 4, 2013
Design-build makes gains along with more authorizing legislation
In 2009, more legislation authorizing design-build project delivery passed than in any year in Design Build Institute of America’s history.
| Dec 4, 2013
Rotterdam resiliency policies include floating neighborhood
The low-lying city of Rotterdam in the Netherlands is a world leader in storm resiliency with policies that impact businesses, private homes, and public infrastructure.
| Dec 4, 2013
Meet the 'world's greenest building': One Angel Square
The 500,000 sf, 14-story One Angel Square in Manchester, England, is being promoted as "the most environmentally-friendly building in the world."
| Dec 3, 2013
Architects urge government to reform design-build contracting process
Current federal contracting laws are discouraging talented architects from competing for federal contracts, depriving government and, by inference, taxpayers of the best design expertise available, according to AIA testimony presented today on Capitol Hill.
| Nov 27, 2013
ASHRAE data center standard open for public review
Standard 90.4P, Energy Standard for Data Centers and Telecommunications Buildings, is being developed in response to requests to recognize the energy performance profiles unique to data centers.
| Nov 27, 2013
Ohio legislators move to ban use of LEED on public construction
Two Ohio state senators have introduced legislation that seeks to ban the use of LEED in public construction.