3,881 Hotel Projects Totaling 469,139 Rooms Under Contract in United States

According to the December 2015 STR Pipeline Report, there are 3,881 hotel projects totaling 469,139 rooms Under Contract in the United States, a 13.6% increase in the number of hotel rooms Under Contract compared with December 2014 and a 17.2% year-on-year increase in rooms under construction.

Among the Chain Scale segments, the Economy segment reported the largest year-over-year increase in rooms Under Contract, rising 70.0% to 6,801 rooms.

“While the growth of Economy rooms in the pipeline was significant compared with last December, Economy chains still represent the smallest number of rooms both Under Contract and In Construction,” said Bobby Bowers, STR’s senior VP of operations.

The Upper Midscale segment (+23.9% to 157,034 rooms) and the Upper Upscale segment (+23.4% to 38,885 rooms) followed Economy in next highest percentage change for rooms Under Contract.

The Unaffiliated segment (-11.0% to 89,757 rooms) reported the only decrease in the number of rooms Under Contract.

All segments with the exception of Upper Upscale (-13.5% to 11,524 rooms) reported an increase in rooms under construction. The Economy segment (+130.8% to 1,512 rooms) reflected the largest year-over-year increase in rooms In Construction.

“Numbers are up almost across the board, but 69% of the total construction in the U.S. resides in the Upscale and Upper Midscale segments,” Bowers added. “And while the total number of rooms in the Final Planning phase is up almost 47%, the Upscale and Upper Midscale segments each reported an increase around 70% in that phase.”

The Under Contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Unconfirmed stage.

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