According to the September 2014 STR Global
Construction Pipeline Report, the Asia Pacific region reported
2,365 hotels comprising 533,555 rooms under contract.
Among the countries in the region, Bangladesh,
reported the largest expected room supply growth (+254.1%) if all
4,271 rooms under contract open.
Five other countries reported
more than 30.0% expected room growth: Myanmar (+89.7% with 5,682
rooms); Mongolia (75.6% with 952 rooms); Sri Lanka (+47.5% with
5,201 rooms); Philippines (+31.9% with 14,285 rooms); and
Indonesia (+31.1% with 60,666 rooms).
The under contract data includes projects
in the In Construction, Final Planning and Planning stages but
does not include projects in the Unconfirmed stage.
The Caribbean/Mexico hotel development pipeline
comprises 170 hotels totaling 29,572 rooms.
This represents a 23.5% increase in rooms
compared with September 2013 and a 31.0% increase in rooms in construction.
Among the Chain
Scale segments, the Upscale segment accounted for the largest
portion of rooms Under Contract (24.4%) with 7,213 rooms. Three
other segments each accounted for more than 15.0% of rooms Under
Contract: the Luxury segment (20.9% with 6,189 rooms); the Upper
Midscale segment (19.2% with 5,962 rooms); and the Unaffiliated
segment (18.5% with 5,474 rooms).
Three segments each made
up more than 20.0% of rooms in the In Construction phase: the
Luxury segment (26.8% with 3,803 rooms); the Unaffiliated segment
(22.8% with 3,232 rooms); and the Upscale segment (22.1% with
Canada’s hotel development pipeline comprises 211
projects totaling 23,370 rooms, which represents a 1.5% decrease in the
number of rooms under contract when compared with September 2013.
Among the Chain Scale segments, the
Midscale segment reported the largest increase in rooms Under
Contract, rising 30.8% to 1,092 rooms, followed by the Upper
Midscale segment with a 22.4% increase to 7,748 rooms. The
Luxury segment (-63.0% to 147 rooms) and the Unaffiliated segment
(-26.9% to 5,125 rooms) reported the largest decreases in rooms
Three segments reported increases in rooms
In Construction of more than 25.0%: the Economy segment (+104.1%
to 345 rooms); the Upper Midscale segment (+60.0% to 3,789 rooms);
and the Upper Upscale segment (+25.5% to 1,418 rooms). The
Midscale segment (-37.5% to 100 rooms) and the Unaffiliated
segment (-29.2% to 422 rooms) recorded the largest decreases in
rooms In Construction.
There are 3,291 hotels totaling 395,078 rooms Under
Contract in the United States, which represents a 14.3% increase in the
number of rooms Under Contract compared with September 2013 and a
34.5% increase in rooms under construction.
“Rooms under construction in STR’s top
26 markets topped 45,000 in September,” said Bobby Bowers, senior
VP of operations at STR. “The top markets accounted for 41%
of total U.S. construction, down from 45% at the same time last
year, indicating increased development activity in secondary
markets. The New York market was the runaway leader with 13,605
rooms under construction—over 12% of the U.S. total. Houston and
Washington, D.C., round out the top three markets, which together
account for about one of every five U.S. hotel rooms under
Among the Top 26 Markets, New York, New
York, reported the most rooms under construction in September with
13,605 rooms, a 5.3% increase over September 2013. Four
other markets reported more than 2,500 rooms under construction in
September: Houston, Texas (4,504 rooms, up 143.6%); Washington,
D.C. (3,036 rooms, up 5.9%); Chicago, Illinois (2,786 rooms, up
86.7%); and Miami-Hialeah, Florida (2,652 rooms, up 84.9%).
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