According to the May 2012 STR/McGraw Hill
Construction Dodge Pipeline Report, the total active U.S. hotel
development pipeline comprises 2,711 projects totaling 290,392
This represents a 6.4% decrease in the number of rooms in
the total active pipeline compared to May 2011.
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.
"While we continue to see an overall draw down
in the Active Pipeline, the most significant increase in sheer
rooms under construction continues to be in the Upscale and Upper
Midscale segments," said Duane Vinson, VP of database content and integrity at STR. "The Upscale segment moved from 12,968 rooms in
construction last May to 17,882 this May, a 37.9% jump. The Upper
Midscale segment saw a 26.2% increase, going from 15,488 rooms to
Chain Scale segments, the Luxury segment experienced the largest
increase in rooms in the active pipeline, rising 60.1% with 6,592
rooms. The segment was the only one to report an increase in rooms
in the active pipeline. The Unaffiliated segment reported the
largest decrease with a 13.6% decrease to 82,713 rooms, followed
by the Midscale segment with an 8.0% decrease to 21,984 rooms. The
Upper Midscale segment reported the largest number of rooms in the
total active pipeline with 86,659 rooms.
The Luxury segment
reported the largest increase in rooms in the In Construction
phase, up 95.4% to 1,602 rooms, followed by the Upscale segment
(+37.9% to 17,882 rooms) and the Upper Midscale segment (+26.2% to
19,544 rooms). The Midscale segment reported the only double-digit
decrease in rooms under construction, falling 23.9% to 3,023
"The top seven brands with rooms in the active
pipeline make up nearly one third of what we see in development,"
Vinson continued. "All of which have very aggressive growth
strategies and reside in the Upscale and Upper Midscale chain
scales. A ten-year trend shows these two segments average
occupancies of 67.6 and 61.7% respectively, so it's easy to see
why developers expect continued healthy demand."
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