STR’s April 2016 Pipeline Report shows 506,000 rooms in 4,125 projects under contract in the U.S. The total represents a 14.6% increase in the number of rooms under contract compared with April 2015.
Under contract data includes projects in the construction, final planning, and planning stages, but does not include projects in the unconfirmed stage.
In the construction stage, the U.S. reported 161,014 rooms in 1,241 projects, a 28.3% increase in year-over-year comparisons.
Among the Chain Scale segments, Upscale (55,994 rooms in 407 hotels) accounted for the most rooms in construction, followed by Upper Midscale (52,934 rooms in 523 hotels).
“The Upscale and Upper Midscale segments combine to represent more than 67% of total construction activity in the U.S., with almost 109,000 rooms between the two,” said Bobby Bowers, STR’s Senior VP for Operations. “Looking further down the road, these two segments combine for almost 207,000 rooms in the two planning phases. That means these segments will likely continue to experience significant supply increases over the next few years. It will be very interesting to monitor the effect on select-service occupancy.”
The Economy segment reported the least contract and construction activity but the largest year-over-year increases in rooms under contract (+41.2% to 4,731 rooms) and in construction (+94.8% to 1,276 rooms).
“The increase in activity is coming across the board,” Bowers said.
Every segment with the exception of Luxury (+7.9%) reported a double-digit increase in construction activity when compared with last April. Every segment outside of Unaffiliated (+2.4%) reported a double-digit lift in under contract.
Related Stories
| Aug 11, 2010
Platinum Award: Monumentally Hip Hotel Conversion
At one time the tallest building west of the Mississippi, the Foshay Tower has stood proudly on the Minneapolis skyline since 1929. Built by Wilbur Foshay as a tribute to the Washington Monument, the 30-story obelisk served as an office building—and cultural icon—for more than 70 years before the Ryan Companies and co-developer RWB Holdings partnered with Starwood Hotels & Resor...
| Aug 11, 2010
Hilton President Hotel
Once an elegant and fashionably trendy locale, the Presidential Hotel played host to the 1928 Republican National Convention where Herbert Hoover was nominated for President, and acted as a hot spot for Kansas City Jazz in the '30s and '40s. The hotel was eventually abandoned in 1984, at which point it became a haven for vagabonds and pigeons, collecting animal waste and incurring significant s...
| Aug 11, 2010
CityCenter Takes Experience Design To New Heights
It's early June, in Las Vegas, which means it's very hot, and I am coming to the end of a hardhat tour of the $9.2 billion CityCenter development, a tour that began in the air-conditioned comfort of the project's immense sales center just off the famed Las Vegas Strip and ended on a rooftop overlooking the largest privately funded development in the U.
| Aug 11, 2010
The softer side of Sears
Built in 1928 as a shining Art Deco beacon for the upper Midwest, the Sears building in Minneapolis—with its 16-story central tower, department store, catalog center, and warehouse—served customers throughout the Twin Cities area for more than 65 years. But as nearby neighborhoods deteriorated and the catalog operation was shut down, by 1994 the once-grand structure was reduced to ...
| Aug 11, 2010
Great Solutions: Healthcare
11. Operating Room-Integrated MRI will Help Neurosurgeons Get it Right the First Time A major limitation of traditional brain cancer surgery is the lack of scanning capability in the operating room. Neurosurgeons do their best to visually identify and remove the cancerous tissue, but only an MRI scan will confirm if the operation was a complete success or not.
| Aug 11, 2010
Gold Award: Westin Book Cadillac Hotel & Condominiums Detroit, Mich.
“From eyesore to icon.” That's how Reconstruction Awards judge K. Nam Shiu so concisely described the restoration effort that turned the decimated Book Cadillac Hotel into a modern hotel and condo development. The tallest hotel in the world when it opened in 1924, the 32-story Renaissance Revival structure was revered as a jewel in the then-bustling Motor City.
| Aug 11, 2010
Silver Award: Palmer House Hilton Hotel & Shops Chicago, Ill.
Chicago's Palmer House Hilton holds the record for the longest continuously operated hotel in North America. It was originally built in 1871 by Potter Palmer, one of America's first millionaire developers. When it was rebuilt after the Great Chicago Fire it became the first hotel in the U.S. to put a telephone in every room.
| Aug 11, 2010
Gulf Coast Hotel's Stormy Road to Recovery
After his initial tour of the dilapidated 1850s-era Battle House Hotel, Ron Blount, construction manager with Retirement Systems of Alabama, said to his boss: “You need a priest more than you need a contractor.” Those words were more prescient to RSA's restoration of the historic Mobile landmark than he could have known at the time.
| Aug 11, 2010
Lifestyle Hotel Trends Around the World
When the Rocco Forte Collection opens the Verdura Golf & Spa Resort in Sicily in early 2009, the 200-room luxury property will be one of the world's newest lifestyle hotels. Lifestyle hotels cater to guests seeking a heightened travel experience, which they deliver by offering distinctive—some would say avant-garde, or even outrageous—architecture, room design, amenities, and en...
