STR Reports Canadian Hotel Pipeline for June 2011

Travel News Asia Latest Travel News Podcasts Videos Thursday, 14 July 2011

According to the June 2011 STR/McGraw Hill Construction Dodge Pipeline Report, the Canadian hotel development pipeline comprises 191 projects totaling 21,353 rooms. This represents a 4.1% decrease in the number of rooms in the total active pipeline compared to June 2010.

"Hotel development in the active pipeline remains virtually unchanged at the end of the second quarter (21,353 rooms) versus the first quarter (20,715 rooms) in Canada," said Duane Vinson, VP, client services at STR. "When compared with June 2010, there is a significant increase in rooms in Final Planning. However, the decrease in rooms in the In Construction phase and the earlier Planning phase is resulting in a net decline of only 4.1%. The most profound jump we see in final planning is in the Upscale brands (up 1,479 rooms) year-over-year and Upper Midscale (up 2,534 rooms)."

"The majority of rooms under construction continues to be in the Upscale segment with 1,731 rooms, or 33.1% of all rooms in construction (compared to 34.5% at the end of first-quarter 2011), followed closely by Independent or non-affiliated hotels with 1,713 rooms, which makes up 32.7% of all rooms under construction rooms (compared to 29.3% at the end of first-quarter 2011)," Vinson added. "Both segments reported minimal change in rooms under construction between the first and second quarters."

Among the Chain Scale segments, two reported increases in rooms in the total active pipeline: the Upper Midscale segment (+23.6% with 5,094 rooms) and the Unaffiliated segment (+18.2% with 9,501 rooms). Three segments ended the month with a decrease in rooms in the total active pipeline of more than 50%: the Luxury segment (-76.1% with 202 rooms); the Midscale segment (-74.0% with 472 rooms); and the Economy segment (-59.7% with 364 rooms).

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