The total active U.S. hotel development pipeline comprises 2,925 projects totaling 357,769 rooms, according to the January 2014 STR Pipeline Report. This represents a 16.4-percent increase in the number of rooms in the total active pipeline compared with January 2013 and a 33.4-percent increase in rooms under construction. 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.
U.S. hotel construction pipeline by Chain Scale segment (number of rooms and percent change January 2014 versus January 2013)
“Upscale and Upper Midscale segments continue to dominate all phases of the active U.S. development pipeline,” said Bobby Bowers, senior VP of operations at STR. “With more than 60,000 rooms currently under construction, the two segments combined accounted for more than two of every three U.S. hotel rooms currently under construction.
“The Upper Upscale segment ranked third with more than 8,000 rooms in the ground, an increase of over 13.6 percent versus prior year. All STR Chain Scale segments, with Luxury the lone exception, registered double-digit increases in room construction activity, versus January 2013.”
Among the Chain Scale segments, the Upper Upscale segment reported the largest increase in rooms in the total active pipeline, rising 58.8 percent over January 2013 to 24,358 rooms. Two other segments reported increases in rooms in the total active pipeline of more than 15 percent: the Upscale segment (+17.0 percent to 96,348 rooms) and the Unaffiliated segment (+16.9 percent to 105,107 rooms). The Luxury segment was the only segment to report a decrease in rooms in the total active pipeline, falling 7.2 percent to 7,367 rooms.
Five segments reported increases in rooms under construction of more than 20 percent: the Midscale segment (+51.1 percent 5,100 rooms); the Upper Midscale segment (+46.4 percent to 28,906 rooms); the Upscale segment (+38.6 percent to 35,721 rooms); the Unaffiliated segment (+21.8 percent to 13,329 rooms); and the Economy segment (+20.9 percent to 1,167 rooms). The Luxury segment fell 3.3 percent in rooms under construction to 4,577 rooms.
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