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
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...
