According to the July 2012 STR/McGraw Hill
Construction Dodge Pipeline Report, the total active U.S. hotel
development pipeline comprises 2,745 projects totaling 300,954
This represents a 6.9% decrease in the number of rooms in
the total active pipeline compared to July 2011.
The total active
pipeline data includes projects in the In Construction, Final
Planning and Planning stages but does not include projects in the
"July continues the summer trend of a
significant year-over-year increase in rooms in the In
Construction phase," said Duane Vinson, VP of database content and
integrity at STR. "July posted 61,490 rooms under construction
compared to 54,608 last year - a 12.6% increase. When STR released
June year-to-date performance, which showed an increase in
occupancy of 3.4% and average daily rate gaining momentum
at 4.4%, it's easy to understand why hotel companies are eager to
open new properties. Not surprisingly, the Upscale and Upper
Midscale segments, which have performed remarkably well during the
recovery, led all other segments with a 33.3% and 12.0% increase
in rooms under construction, respectively ... While construction is up, we're seeing very
little change now in the total active pipeline, with a very modest
1.6% increase compared to last month and a 6.9% decline compared
to July 2011. The only real movement is with the Upscale and Upper
Midscale segments, comprising 55% of the nearly 300,000
rooms in the phases that make up the active pipeline."
Among the Chain Scale segments, the Luxury
segment reported the largest growth in rooms in the total active
pipeline, increasing 93.1% with 7,951 rooms.
segment was the only other segment to report an increase in rooms
in the total active pipeline, rising 12.2% with 4,088
The Upper Upscale segment ended the month with the largest
decrease of rooms in the total active pipeline, falling 26.9% with 17,473 rooms.
Overall, the Upper Midscale segment
reported the largest number of rooms in the active pipeline with
Three segments reported increases in the rooms
under construction of more than 20%: the Economy segment
(+40.6% with 1,340 rooms); the Upscale segment (+33.3% with 19,605 rooms); and the Unaffiliated segment (+22.7% with 10,261 rooms).
The Midscale segment reported the
largest decrease in rooms under construction, falling 32.1%
with 2,403 rooms.
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