The total active U.S. hotel development pipeline includes 4,089 projects comprising 435,265 rooms, according to the October 2009 STR/TWR/Dodge Construction Pipeline Report released this week.
This represents a 32.7-percent decrease in the number of rooms in the total active pipeline compared to October 2008. The total active pipeline data includes projects in the In Construction, Final Planning and Planning stages, but does not include projects in the Pre Planning stage.
'The number of rooms In Construction fell 41.2 percent from the same time last year,' said Duane Vinson, vice president at STR. 'Declines in Final Planning and Planning are not as lofty at 30.3 percent and 28.9 percent, respectively. The number of rooms entering the In Construction phase will continue to decline as fewer projects receive financing and city approvals.'
All seven Chain Scale segments reported declines in the number of rooms in the In Construction phase for the month. The Economy segment experienced the largest decrease in rooms in the total active pipeline, falling 49.8 percent to 13,341 rooms. Two other segments experienced decreases in rooms in the total active pipeline of more than 40 percent: the Upper Upscale segment (-45.8 percent to 25,143 rooms) and the Luxury segment (-42.4 percent to 8,410 rooms). The Midscale with Food and Beverage segment (-26.1 percent to 23,815 rooms) and the Midscale without Food and Beverage segment (-28.5 percent to 127,352 rooms) experienced the smallest declines in rooms in the total active pipeline.
U.S. pipeline by Chain Scale segment (number of rooms and percent change October 2009 vs. October 2008)
* Includes those projects in the In Construction, Final Planning and Planning phases.
About STR/TWR/Dodge Construction Pipeline Report
The Pipeline Report is co-produced by Torto Wheaton Research, Dodge Construction, and the dedicated pipeline team at STR. Available as an annual subscription or a local Market Supply Report, the Pipeline Report is a comprehensive look at new hotel development and existing supply in the U.S. and Canada.
About STR & STR Global
For more than 20 years, Smith Travel Research has been the recognized leader for lodging industry benchmarking and research. Smith Travel Research and STR Global offer monthly, weekly, and daily STAR benchmarking reports to more than 36,000 hotel clients, representing nearly 5 million rooms worldwide. STR is headquartered in Hendersonville, Tenn., and STR Global is based in London. For more information, visit www.smithtravelresearch.com or www.strglobal.com.
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