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
Codes and Standards | Feb 17, 2022
Pandemic won’t alter urban planning
City planners focused on returning to ‘old normal’.
Codes and Standards | Feb 16, 2022
California court rules affordable housing developers exempt from local zoning
Case could set precedent on state law that overrides local rules.
Codes and Standards | Feb 15, 2022
FORTIFIED resiliency standard expanded to include multifamily sector
Voluntary, beyond-code program aims to protect buildings from severe weather.
Codes and Standards | Feb 10, 2022
Number of Americans at risk of flooding to double in 30 years
Most new risk from new development, not climate change.
Codes and Standards | Feb 10, 2022
Intl. Code Council committee on diversity seeks applicants
New board aims to increase diversity in the membership association.
Codes and Standards | Feb 9, 2022
Climate impact of gas stoves in U.S. equal to half a million cars
New study could increase momentum to ban fossil fuels in new buildings.
Codes and Standards | Feb 7, 2022
Energy efficiency ratings not reflecting true energy use
Highest rated U.K. buildings are less efficient than lower rated ones.
Codes and Standards | Feb 3, 2022
Illinois tops USGBC list of states with the most LEED certified projects in 2021
Top 10 states plus D.C. certified more than 247 million gross square feet.
Codes and Standards | Feb 2, 2022
Public works contracting reform advances in New York State
Governor signs bill to form advisory council that will propose policy changes.
Codes and Standards | Feb 2, 2022
Commercial and multifamily construction starts rebounded in 2021
Following COVID uncertainty in 2020, the industry recovered, but still lags 2019 levels.