According to the January 2015 STR Pipeline
Report, there are 3,644 projects totaling 438,957 rooms Under
Contract in the United States.
This number represents an 18.8% increase
in the number of rooms Under Contract compared with January 2014
and a 31.8% increase in rooms under construction.
Contract data includes projects in the In Construction, Final
Planning and Planning stages but does not include projects in the
“The U.S. development pipeline continues
to increase steadily. January rooms under construction hit
127,653, an increase of more than 6% from December 2014 and about
one-third higher than January 2014,” said Bobby Bowers, senior VP
of STR, Inc. “Upscale and Upper Midscale brands continue to
dominate construction activity, accounting for two-thirds of the
total. STR anticipates full-year 2015 U.S. room supply
growth of 1.3% ... The pipeline continues to
remain relatively in check when compared to the long-term average,
which should help the industry maintain its current strong
performance metrics. Lending parameters, development costs and the
scarcity of some construction materials have led to excellent
conditions in the hotel industry that are spurring some growth but
not the over-the-top additions we’ve seen during some of the past
Among the Chain Scale segments, the Upper
Upscale segment reported the largest increase in rooms in Under
Contract, rising 33.7% to 33,391 rooms over January 2014. The
Luxury segment followed with a 32.2% increase to 10,106 rooms. The
Economy segment reported the largest decrease in the number of
rooms Under Contract (-9.1% to 4,043 rooms).
All segments but Economy (-41.3% to 685 rooms)
and Midscale (+9.5% to 5,583 rooms) reported increases in rooms
under construction of more than 25.0% year over year. The Upper
Upscale segment reported the largest increase, rising 79.5% to
14,449 rooms. The Upscale segment followed with a 32.2% increase
to 47,222 rooms.
Asia Pacific Hotel Pipeline - January 2015
There are 2,400 hotels totalling 542,207 rooms
Under Contract in the Asia Pacific region.
Among the countries in
the Asia Pacific region, China reported the most rooms under construction with
140,952 rooms in 460 hotels. Five other countries reported more
than 5,000 rooms under construction: Indonesia (28,652 rooms in
159 hotels); India (26,444 rooms in 161 hotels); Malaysia (11,885
rooms in 43 hotels); Japan (6,851 rooms in 29 hotels); and
Philippines (6,773 rooms in 24 hotels).
Middle East / Africa Region Hotel Pipeline - January 2015
There are 633 hotels totalling 147,953 rooms
Under Contract in the Middle East/Africa region,.
Among the Chain Scale segments, the
Upper Upscale segment accounted for the largest portion of rooms
in the Under Contract (36.0%) with 53,257 rooms. Two other
segments each accounted for more than 15.0% of rooms in
Under Contract: the Upscale segment (20.8% with 30,703
rooms) and the Luxury segment (18.8% with 27,820 rooms).
The Upper Upscale segment made up the largest portion of rooms
under construction (40.3% with 29,770 rooms, followed by
the Luxury segment (22.2% with 16,448 rooms) and the Upscale segment (19.9% with 14,699 rooms).
Europe Hotel Pipeline - January 2015
According to STR, there are 912 hotels totalling
144,374 rooms Under Contract in Europe.
Among the region’s key markets, Istanbul, Turkey, reported the
largest number of rooms under construction with 4,981 rooms.
other markets ended the month with more than 1,500 rooms under
construction: Greater London, England (4,470 rooms); Greater
Amsterdam, Netherlands (2,368 rooms); Baku, Azerbaijan (1,654
rooms); and Greater Berlin, Germany (1,642 rooms).
Central / South America Hotel Pipeline - January 2015
There are 436 hotels totalling 69,718 rooms
Under Contract in the Central/South America region. This
represents a 14.3% year-on-year increase in rooms Under Contract
and a 27.9% increase in rooms under construction.
Among the Chain Scale segments, the Upscale
segment accounted for the largest portion of rooms Under Contract
(21.2% with 14,787 rooms). Three other segments each accounted for
more than 15.0% of rooms Under Contract: the Upper Midscale
segment (20.4% with 14,189 rooms); Midscale (19.5% with 13,583
rooms); and Upper Upscale (19.2% with 13,407 rooms). The
Unaffiliated segment made up the smallest portion of rooms Under
Contract (3.9% with 2,710 rooms).
The Upscale segment accounted for the largest
portion of rooms under construction (27.4% with 7,378 rooms),
followed by the Midscale segment (17.7% with 4,773 rooms) and the
Upper Midscale segment (17.6% with 4,723 rooms).
Caribbean / Mexico Hotel Pipeline - January 2015
There are 163 hotels totaling 28,698 rooms Under
Contract in the Caribbean/Mexico region. This represents a 6.8%
increase in rooms Under Contract, compared with January 2014, and
a 7.6% decrease in rooms under construction.
Among the Chain Scale segments, the Upper
Upscale segment reported the largest increase in rooms Under
Contract, rising 34.6% with 4,529 rooms, followed by the Midscale
segment (+25.9% with 2,717 rooms) and the Upscale segment (+17.8%
with 6,109 rooms). The Unaffiliated segment reported the largest
decrease in rooms Under Contract, falling 11.3% with 4,097 rooms.
Looking specifically at the In Construction
stage, the Upper Upscale segment reported the largest
year-over-year increase in rooms (+39.5% with 1,320 rooms). The
Midscale segment followed with a 39.0% increase to 624 rooms. The
Upper Midscale segment reported the largest decrease in rooms in
the In Construction phase (-32.6% with 1,432 rooms).
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