According to STR’s April 2017 Pipeline Report
there are 580,427 hotel rooms in 4,843 projects Under Contract in
the United States.
The total represents a 14.7% increase in the
number of rooms Under Contract compared with April 2016.
In the In Construction stage, the U.S. reported
189,806 rooms in 1,456 projects. Based on the number of rooms,
that is a 17.9% increase in year-on-year comparisons.
“Activity is certainly up year-on-year, but we
have actually seen total room construction numbers decrease for
two straight months now,” said Bobby Bowers, STR’s senior VP for
operations. “Year-on-year growth also is lower than this time
last year, so while we won’t know for sure for another several
months, perhaps we are seeing the beginning of a slowing
development activity period.”
Looking at construction activity among the Chain
Scale segments, Upper Midscale (64,269 rooms in 625 hotels)
accounted for the most rooms In Construction followed by Upscale
(59,979 rooms in 446 hotels).
“Limited service still accounts for roughly
two-thirds of all hotel construction in the country,” Bowers said.
“But the influx of new supply didn’t seem to upset Upscale and
Upper Midscale performance during the first quarter. Helped by the
Easter calendar shift, room demand growth was the highest in those
Despite representing the lowest number of rooms
in the pipeline, the Economy segment reported the largest
percentage increase for rooms Under Contract (+124.6% to 10,626
The Upper Upscale segment reported the largest
percentage increase for rooms In Construction (+66.1% to 26,363
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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