Construction Pipeline U.S.

U.S. Hotel Construction Pipeline for March 2015 Up 13.7% over 2014

There are 3,566 projects totaling 433,589 rooms Under Contract in the United States, according to the March 2015 STR Pipeline Report. This represents a 13.7-percent increase in the number of rooms Under Contract compared with March 2014 and a 22.7-percent increase in rooms under construction.

STR

There are 3,566 projects totaling 433,589 rooms Under Contract in the United States, according to the March 2015 STR Pipeline Report. This represents a 13.7-percent increase in the number of rooms Under Contract compared with March 2014 and a 22.7-percent increase in rooms under construction. The Under Contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Unconfirmed stage.

“The number of U.S. rooms under construction hit 126,171, which is an increase of almost 23 percent versus March 2014 but a decrease of about 2 percent from this past February,” said Bobby Bowers, STR’s senior VP for operations. “While Upscale and Upper Midscale brands continued their dominance of the construction numbers, Upper Upscale topped 14,000 rooms in construction—a 45-percent increase versus March 2014. That rise is another indication that the appetite for risk and return is increasing.”

Among the Top 25 Markets, New York, New York, reported the most rooms Under Contract with 29,928 rooms. Others rounding out the top five markets for rooms Under Contract include: Houston, Texas (17,458 rooms); Las Vegas, Nevada (12,484 rooms); Dallas, Texas (11,337 rooms); and Washington, D.C.-Maryland-Virginia (10,698 rooms).

New York had the largest number of rooms under construction (13,368 rooms), followed by Houston with 6,173 rooms. 

“New York’s in-construction number is almost 12 percent of its existing supply, and it accounts for roughly 10 percent of total U.S. construction,” Bowers said. “Houston is second, but a lot of new supply coupled with sliding oil prices is not the best combination.”

Three other markets reported more than 3,000 rooms under construction: Miami/Hialeah, Florida (4,026 rooms); Chicago, Illinois (3,572 rooms); and Washington, D.C. (3,435 rooms). Markets with more than 2,000 rooms under construction include: Los Angeles/Long Beach, California (2,820 rooms); Seattle, Washington (2,427 rooms); San Diego, California (2,276 rooms); and Dallas (2,243 rooms).

Top 10 U.S. Markets by rooms in the In Construction phase* 

Market

Existing Supply

In Construction  March 2015

In Construction March 2014

In Construction YOY % change

New York, New York

112,793

13,368

13,595

-1.7%

Houston, Texas

77,149

6,173

3,116

+98.1%

Miami/Hialeah, Florida

50,171

4,026

2,290

+75.8%

Chicago, Illinois

110,118

3,572

1,591

+124.5%

Washington, D.C.

106,747

3,435

3,352

+2.5%

Los Angeles/Long Beach, California

98,041

2,820

2,740

+2.9%

Seattle, Washington

41,488

2,427

1,889

+28.5%

San Diego, California

59,858

2,276

681

+234.2%

Dallas, Texas

79,135

2,243

1,785

+25.7%

Anaheim/Santa Ana, California

54,882

1,934

1,167

+65.7%

Source: STR, Inc. / *Data as of 31 March 2015

About STR

STR, Inc. provides clients including hotel operators, developers, financiers, analysts and suppliers to the hotel industry?access to hotel research with regular and custom reports covering the United States, Canada, Mexico and Caribbean. STR provides a single source of global hotel data covering daily and monthly performance data, forecasts, annual profitability, pipeline and census information. STR founded the STR family of companies and is proudly associated with STR Global, STR Analytics and Hotel News Now. STR also founded the Hotel Data Conference. For more information, please visit www.str.com.



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