According to STR's June 2017 Pipeline Report,
there are 583,028 hotel rooms in 4,836 projects Under Contract in
the United States.
The total represents an 11.6% increase in the
number of rooms Under Contract compared with June 2016.
In the In Construction stage, the U.S. reported
186,945 rooms in 1,440 projects. Based on the number of rooms,
that is a 12.4% increase in year-on-year comparisons but a 2.5%
decrease from the previous month.
“With May as the exception, we have now seen a
decrease in room construction totals in three of the last four
months,” said Bobby Bowers, STR’s senior VP for operations. “While
the month-to-month fluctuations prevent us from definitively
calling this a development slowdown, we can certainly point to a
significantly lower growth rate year over year in identifying such
a trend. Regardless, there will still be plenty of construction
and planning activity even with occupancy levels heading toward
Looking at construction activity among the Chain
Scale segments, Upper Midscale (62,237 rooms in 610 hotels)
accounted for the most rooms In Construction followed by Upscale
(58,833 rooms in 434 hotels).
“Those two limited-service segments account for
65% of all U.S. construction activity, and that is not going to
change anytime soon with 67% of the Final Planning stage also
represented by Upscale and Upper Midscale projects,” Bowers said.
“At the same time, Midscale looks to be gaining steam, ranking
third in rooms being constructed and in that Final Planning
Despite representing the lowest number of rooms
in the pipeline, the Economy segment reported the largest
year-on-year percentage increase for rooms In Construction
(+128.0% to 2,440 rooms) and Under Contract (+160.1% to 11,157
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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