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 20, 2012
Air duct trade group urges maintenance, restoration professionals to avoid chemical cleaners
The National Air Duct Cleaners Association (NADCA) urges professionals to avoid using chemicals as a method for cleaning and maintaining air duct systems.
| Dec 20, 2012
Valencia College shifts from LEED to Green Globes on new project for more flexibility
The Lake Nona campus of Valencia College in Florida shifted its sustainability standard to Green Globes largely to be able to use a bipolar-ionization system to treat its indoor air -- something LEED didn't allow.
| Dec 20, 2012
LEED-certified schools don’t have to cost more to build, save average of 33% on energy
On average, green schools use 33% less energy and 32% less water than their conventional counterparts, and save $100,000 per year on direct operating costs, according to the U.S. Green Building Council.
| Dec 13, 2012
New OSHA initiatives on tap at AGC safety and health conference
More than 150 industry professionals will discuss the development of regulatory and legislative activity on national and local levels at the Associated General Contractors of America’s health and safety conference.
| Dec 13, 2012
So-called fiscal cliff is already affecting construction jobs, AGC finds
In November, the construction industry shed 20,000 jobs and its unemployment rate reached 12.2%, according to an analysis by the Associated General Contractors of America.
| Dec 13, 2012
New York City poised to enact recycling mandate for multi-family dwellings
New York City lags behind other large cities in recycling with only 15% of residential trash being recycled. A new bill passed by the City Council aims to improve the rate by changing how new apartment buildings are constructed.
| Dec 13, 2012
Pima County, Ariz. officials say improved code enforcement scores will help lower insurance bills
Insurance Service Office, Inc. (ISO) recently analyzed building codes and enforcement and found that Pima County, Ariz., consistently outscored comparable jurisdictions in Arizona and the nation.
| Dec 13, 2012
D.C. aims to be a green leader with new building codes
The District of Columbia has released a revised set of building codes to make it a leader in green construction.
