According to the January 2013 STR Pipeline
Report, the total active U.S. hotel development pipeline comprises
2,637 projects totaling 307,289 rooms.
This represents a 4.9% increase in the
number of rooms in the total active pipeline compared with January
2012, and a 38.3% increase in rooms under construction.
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.
"Under construction rooms continue their steady
climb, increasing about 7% from last month and more than 38%
versus January 2012," said Bobby Bowers, Senior VP of operations
at STR. "Upscale and Upper Midscale brand dominance continues,
accounting for almost 63% of rooms that have broken ground.
Additionally, Luxury rooms under construction are up significantly
from January 2012, perhaps reflecting confidence in the industry's
sustained upward momentum. We expect supply growth to continue
inching forward in 2013, with full year net growth of around 1%."
Among the Chain Scale segments, the Luxury segment reported
the largest increase in rooms in the total active pipeline, rising
96.8% with 7,940 rooms, followed by the Upscale segment with a
10.7% increase to 82,412 rooms.
Three markets reported
double-digit decreases in the number of rooms in the total active
pipeline: Upper Upscale segment (-22.5% with 15,339 rooms); the
Midscale segment (-17.9% with 19,530 rooms); and the Economy
segment (-11.2% with 4,002 rooms).
The Luxury segment
achieved the largest increase in rooms under construction, jumping
477.7% with 4,731 rooms, followed by the Upscale segment (+53.9%
with 25,781 rooms) and the Upper Midscale segment (+22.5% with
The Upper Upscale segment was the only one to
report a decrease in rooms under construction, falling 7.1% with
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