U.S. Hotel Construction Pipeline Under Contract for October 2017 Up 5.4 Percent over 2016
STRs October 2017 Pipeline Report shows 584,052 rooms in 4,869 hotel projects Under Contract in the United States. The total represents a 5.4% increase in the number of rooms Under Contract compared with October 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 183,187 rooms in 1,407 projects. Based on the number of rooms, that is a 0.1% decrease in year-over-year comparisons.
This is the first time there has been a year-over-year decrease in U.S. hotel construction since October 2011, said Bobby Bowers, STRs senior VP for operations. The construction total also fell 2.8% from the previous month, and with the Final Planning and Planning stages not moving up significantly, we can expect to see slowing in pipeline numbers in the coming months.
Among the Top 26 Markets, New York, New York, reported the most rooms Under Contract (24,858 rooms) and most rooms In Construction (12,702 rooms).
Three additional markets each reported more than 15,000 rooms Under Contract for the month: Dallas, Texas (18,712 rooms); Orlando, Florida (16,210 rooms); and Houston, Texas (15,979 rooms).
After New York, three other markets reported more than 5,000 rooms In Construction: Dallas (6,685 rooms); Nashville, Tennessee (5,472 rooms); and Las Vegas, Nevada (5,125 rooms).
In September, ADR decreased in the Top 25 Markets for the first time since the recovery period began, Bowers said. New supply continues to pressure occupancy levels and rates in these markets.
Norfolk/Virginia Beach, Virginia, was the only market to report less than 1,000 rooms In Construction with 302 rooms.
STR provides clients from multiple market sectors with premium, global data benchmarking, analytics and marketplace insights. Founded in 1985, STR maintains a presence in 10 countries around the world with a corporate North American headquarters in Hendersonville, Tennessee, and an international headquarters in London, England. For more information, please visit str.com.
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