According to the May 2011 STR/McGraw Hill
Construction Dodge Pipeline Report, the total active U.S. hotel
development pipeline comprises 2,965 projects totaling 310,762
This represents a 3.6% decrease in the number of rooms in
the total active pipeline compared to May 2010.
The total active
pipeline data includes projects in the In Construction, Final
Planning and Planning stages, but does not include projects in the
"Rooms under construction remain a
scant 1% of the existing hotel room inventory (nearly
50,000 rooms under construction vs. 4.88 million existing rooms),"
said Brad Garner, COO at STR. "Only the South and Middle Atlantic
regions are noteworthy, together accounting for more 40% of
rooms in construction. The Pre-Planning phase remains light as
well, with a 2.4% increase over the existing room base through May. The Mountain and South Atlantic regions contributed
the most rooms in this stage, each adding more than 20% of
rooms to the total number of rooms in the highly speculative
Pre-Planning phase of the supply pipeline through May."
Among the nine geographical regions of the U.S., the West South
Central region reported a 54.5% decrease in rooms in
construction with 8,247, reporting the largest decrease among the
Two other regions experienced decreases in the number of
rooms in the In Construction phase of more than 30%: the
Pacific region (-33.8% with 3,508 rooms under construction)
and the New England region (-32.9% with 912 rooms).
The New England region ended the month with the largest decrease
in rooms in the total active pipeline, falling 23.4% with
9,276 rooms, followed by the Mountain region (-20.3% with
26,156 rooms in the total active pipeline) and the South Atlantic
region (-17.3% with 74,965 rooms).
No U.S. region
showed positive growth in the pipeline.
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