According to STR’s January 2017 Pipeline Report,
there are 575,907
hotel rooms in 4,763 projects Under Contract in the United States
The total represents a 16.1% increase in the number of rooms Under
Contract compared with January 2016.
In the In Construction stage, the U.S. reported
190,301 rooms in 1,449 projects. Based on the number of rooms,
that is a 27.3% increase in year-on-year comparisons.
“A little more than 31% of all U.S. hotel
construction is occurring in 10 major markets,” said Bobby Bowers,
STR’s senior VP of operations. “Consistent demand generators no
doubt make these markets attractive for new development, but at
the same time, several are seeing occupancy levels and pricing
power pressured by the influx of new supply.”
Among the Top 26 Markets, New York, New York,
reported the most rooms Under Contract (29,132 rooms) and most
rooms In Construction (15,607 rooms).
“New York’s construction amount accounts for 8%
of all U.S. construction activity and almost 14% of that market’s
existing supply,” Bowers said.
Three additional markets each reported more than
15,000 rooms Under Contract for the month: Dallas, Texas (18,463
rooms); Houston, Texas (17,693 rooms); and Los Angeles/Long Beach,
California (16,338 rooms).
“The Super Bowl provided a nice performance
boost, but Houston faces continued supply-based headwinds in the
battle for improved operating performance,” Bowers said.
Two markets in addition to New York each
reported more than 5,000 rooms In Construction: Dallas (7,228
rooms) and Los Angeles/Long Beach (6,070 rooms).
Three markets each reported fewer than 1,000
rooms In Construction: Minneapolis/St. Paul, Minnesota, Wisconsin
(887 rooms); Norfolk/Virginia Beach, Virginia (456 rooms); and
Oahu Island, Hawaii (180 rooms).
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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