According to the latest United States Construction Pipeline Trend Report from Lodging Econometrics (LE), the U.S. hotel construction pipeline continues its growth off the bottom reached in 2012.
The total U.S. construction pipeline ended Q4 2016 with 4,960 projects/598,688 rooms, up 12% by projects and 10% by rooms year-over-year (YOY). This is the 19th consecutive quarter of pipeline growth, since the cyclical bottom of 2,720 projects/331,129 rooms in Q1 2012.
At present, there are 1,520 projects/196,409 rooms in the pipeline that are currently under construction, up by 208 projects or 16% YOY. Projects scheduled to start in the next 12 months, at 2,392 projects/268,843 rooms, are up 466 projects, 24%. Projects in early planning at 1,048 projects/133,436 rooms are down by 127 projects, 11% YOY as projects continue to migrate up the pipeline towards under construction in anticipation of economic changes.
Analysts at LE also report that of the 4,960 projects in the hotel construction pipeline, 2,019 are in the upper midscale category, the most of any chain scale. This chain scale has also seen the most substantial increase in growth rate over the years, adding 109,919 rooms since 2013 followed by the upscale category with 95,429. In the past year, the midscale category has seen the most growth YOY with an increase of 169 projects, up 43%.
Of the top 25 markets, those that have seen the most growth YOY by project-count are: St. Louis, MO; Denver; Nashville, TN; Seattle, WA; Philadelphia, PA; Tampa, FL; Atlanta; Detroit, MI; Anaheim, CA; and San Francisco.
Currently with 30 projects/3,252 rooms, St. Louis grew a whopping 50% YOY, followed closely by Denver at 48% and Nashville, TN at 42%. Although it did not have the largest YOY growth percentage, Nashville’s pipeline increased by a staggering 36 projects.
For more information on what’s ahead for 2017 and beyond, please call Lodging Econometrics to schedule a complimentary consultation (603) 431-8740 ext. 25 or email [email protected]. Make the most of the years of growth ahead.
—JP Ford, SVP, Director of Business Development, Lodging Econometrics
—Bruce Ford, SVP, Director of Global Business Development, Lodging Econometrics
—Tom O’Gorman, Vice President of Sales, Lodging Econometrics
