U.S. Hotel Construction Pipeline Under Contract for September 2017 Up 5.7 Percent over 2016
STR's September 2017 Pipeline Report shows 585,248 rooms in 4,886 hotel projects Under Contract in the United States. The total represents a 6.6% increase in the number of rooms Under Contract compared with September 2016.
Under Contract data includes projects in the In Construction, Final Planning and Planning stages, but does not include projects in the Unconfirmed stage.
In the In Construction stage, the U.S. reported 188,479 rooms in 1,440 projects. Based on the number of rooms, that is a 5.7% increase in year-over-year comparisons.
“The overall room construction total was down from last month, but outside of Houston, there wasn’t a noticeable decline in activity around hurricane-affected markets,” said Bobby Bowers, STR’s senior VP of operations. “There is still potential for that to change in next month’s reporting if damage to existing sites and increased material costs continue to remain a challenge. Regardless, construction activity and the total pipeline remains up year over year – just at a lot lower rate of growth compared with 2016.”
Among the Top 26 Markets, New York, New York, reported the most rooms Under Contract (25,607 rooms) and most rooms In Construction (13,533 rooms).
Four additional markets each reported more than 15,000 rooms Under Contract for the month: Dallas, Texas (19,312 rooms); Orlando, Florida (16,368 rooms); Houston, Texas(16,266 rooms); and Los Angeles/Long Beach, California (15,023 rooms).
After New York, three other markets reported more than 5,000 rooms In Construction: Dallas (7,047 rooms); Nashville, Tennessee (5,497 rooms); and Las Vegas, Nevada(5,125 rooms).
“The impact of new supply coming online is already visible in occupancy rates among the major markets,” Bowers said. “Demand in those markets continues to grow at a healthy clip as well, but not enough to lift hotelier pricing confidence.”
U.S. Markets (ranked by In Construction phase)
YOY % change
|New York, NY||13,533||16,462||-17.8%|
|Las Vegas, NV||5,125||3,859||+32.8%|
|Los Angeles/Long Beach, CA||4,860||5,921||-17.9%|
Source: STR / report as of September 2017, activity reported through August 2017
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