PORTSMOUTH, NH— Lodging Econometric’s supply side forecast for new hotel openings in 2007 has now been reduced down to 1,087 projects with 115,956 rooms. It is a decrease of 3,470 rooms from LE’s most recent estimate. LE has also reduced its final 2006 estimate to 775 projects with 80,951 rooms, which is a decrease of 4,796 rooms. The causes of the reductions, according to LE, are developers who are having hard times completing projects on time and on budget. As a result of these reductions, LE is predicting that meaningful hotel pipeline growth won’t be seen until 2008. In 2008, a larger amount of luxury, upper upscale and casino hotels are expected to come on line in central business districts, suburbs of large cities and resort destinations. Meanwhile, during the third quarter of this year, the hotel construction pipeline grew by 521 projects and 70,466 rooms. Those figures represent a 147-project increase over the second quarter’s total.
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