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 7, 2012
Georgia court limits contractors’ ability to foreclose on liens
The Georgia Court of Appeals ruled in 182 Tenth, LLC v. Manhattan Construction Company that lien claimants such as contractors, subcontractors, and materialmen, may not foreclose on a lien that includes unpaid general condition costs.
| Dec 7, 2012
San Francisco real estate records will include ‘green labels’
Ecologically-sustainable building practices, or “green labels,” will now be included on official land records maintained by San Francisco.
| Dec 7, 2012
Tokyo’s Green Building Program has reduced power consumption by 20%
Tokyo city officials calculate that its Green Building Program reduced energy consumption by 20% since its inception, a statistic they identify as the reason the power stayed on during the 2011 earthquake.
| Dec 7, 2012
New flexible options make achieving LEED certification easier on projects outside the US
A new set of Global Alternative Compliance Paths, or Global ACPs, are now available for all commercial projects pursuing LEED green building certification using the 2009 versions of the rating systems.
| Nov 29, 2012
New York contractors say they will pay tax despite a court ruling that the tax is unconstitutional
The New York Building Congress says it will voluntarily pay a tax declared unconstitutional by the courts because, it says, the money is vital to maintaining the city’s transportation infrastructure.
| Nov 29, 2012
Storms like Sandy highlight the need for stricter codes, says insurance expert
Experts on insurance, weather, and catastrophe modeling say the role of climate change in Hurricane Sandy and future storms is unclear.
| Nov 29, 2012
Quake simulation to test concrete building's strength in California
Researchers aim to gauge how buildings constructed with reinforced concrete withstand an earthquake by conducting a simulation test at a two-story building built in the 1920s in El Centro, Calif.
| Nov 29, 2012
AGC offers stormwater compliance webinar
An effective document management system is necessary to stay in compliance with new and forthcoming stormwater runoff requirements, says the Associated General Contractors of America.
| Nov 29, 2012
Government policies help accelerate adoption of green building
Green procurement policies or green building mandates can help accelerate the adoption of green building practices, according to research by Timothy Simcoe and Michael Toffel.
