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
| Nov 27, 2013
ASTM issues revised standard on phase I environmental site assessments
ASTM has issued revised standard ASTM E1527-13 that governs phase I environmental site assessments.
| Nov 27, 2013
Vancouver, B.C., bans doorknobs in building code update
The goal of making it easier for people to age in place led to amendments to Vancouver, B.C.’s building code including banning doorknobs in favor of lever handles.
| Nov 22, 2013
Kieran Timberlake, PE International develop BIM tool for green building life cycle assessment
Kieran Timberlake and PE International have developed Tally, an analysis tool to help BIM users keep better score of their projects’ complete environmental footprints.
| Nov 20, 2013
WDMA receives final approval on code amendments
The Window and Door Manufacturers Association (WDMA) was granted final approval of several amendments it proposed to the 2015 editions of the International Residential Code (IRC), International Energy Conservation Code (IECC), and International Existing Building Code (IEBC).
| Nov 20, 2013
Safe Jobs Act would provide more protection for New York City construction workers
Legislation that would require safety training for construction workers on public projects in New York City has been introduced to the City Council.
| Nov 20, 2013
Boston officials grapple with impact of new FEMA flood maps
New federal maps for Boston significantly expand the number of homes and businesses in areas considered at high risk of flooding, a change that could force thousands of property owners to purchase expensive insurance and complicate redevelopment along the city’s waterfront.
| Nov 20, 2013
How LEED and Green Globes stack up
An analysis of the strengths and weaknesses of the Green Globes rating system and LEED standards puts LEED ahead, but doesn’t discount the merits of Green Globes.
| Nov 14, 2013
First LEED v4 certified project garnered by Beijing furniture showroom
Haworth’s showroom in Beijing’s Parkview Green building has been recognized as the world’s first certified LEED project under the USGBC’s new LEED version 4 beta program.
| Nov 14, 2013
OSHA proposes requirement for large firms to disclose workplace injuries
A proposal from the Occupational Safety and Health Administration would require companies with more than 250 employees to disclose workplace injury and illness reports online.
| Nov 14, 2013
GSA asks for input to help study energy-efficient technologies on its buildings
The General Services Administration has posted a request online, asking those in industry, academia and nonprofits for information on green building technologies.