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The total active U.S. hotel development pipeline
includes 4,907 projects with 522,778 rooms, according to the May
2009 STR / TWR / Dodge Construction Pipeline Report released this
week.
These numbers represent a 22.2% decrease in the
number of rooms in the total active pipeline compared to May 2008.
The total active pipeline data includes projects in the In
Construction, Final Planning and Planning stages, but does not
include projects in the Pre-Planning stage.
“As the recession continues to drudge along,
hotel construction in all scales is showing decline,” said Duane
Vinson, vice president of content management for STR. “In sheer
numbers the Upscale segment has nearly 9,000 fewer rooms in the In
Construction phase now versus a year ago, while the Upper Upscale
segment has over 7,000 fewer rooms in the In Construction phase of
the active pipeline. The Midscale without Food and Beverage
segment, another segment that has come on strong in the last year
adding nearly 20,000 new rooms, is posting an In-Construction
decline of 10.1%. This amounts to approximately 6,000 fewer rooms
now being built when compared to last May.”
“One area that we will continue to watch as
signs of a recovery emerge is the Pre-Planning activity,” Vinson
added. “You could certainly speculate that developers will be
paying close attention to get an early jump once things show any
glimmer of improving. This is a pattern that we’ve seen develop
rapidly following the last two downturns.”
When looking at the number of rooms in the In
Construction phase of the active pipeline, all seven chain-scale
segments reported decreases in year-over-year measurements.
The Midscale with Food and Beverage
segment was the only segment to report a single-digit decrease in
the amount of rooms in the In Construction phase, only falling
0.6% to 9,201 rooms.
Three segments posted year-over-year
decreases of more than 20% in the number of rooms in the In
Construction phase, including the Unaffiliated segment’s 44.7%
decrease to 24,289 rooms, the Economy segment’s 42.8% decrease to
6,441 rooms, and the Upper Upscale segment’s decrease of 30% to
16,703 rooms.
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STR,
May 2009
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