Construction Pipeline U.S.

U.S. Hotel Construction Pipeline for January 2016 Up 13.6 Percent over 2015

There are 4,084 projects totaling 496,184 rooms Under Contract in the United States, according to the January 2016 STR Pipeline Report. This represents a 13.0% increase in the number of rooms Under Contract compared with January 2015 and a 17.1% year-over-year 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. 

“Nearly 49% of U.S. hotel room construction is occurring in the 26 markets with the highest existing supply numbers,” said Bobby Bowers, STR’s senior VP for operations. 

Among those Top 26 Markets, New York, New York, reported the most rooms Under Contract (34,217 rooms) and most rooms In Construction (14,544 rooms). 

“New York continues to rank atop the pipeline list while accounting for roughly 10% of all U.S. room construction activity,” Bowers said. “New York’s under construction total also represents more than 12% of its existing room supply—by far the highest percentage of the 26 largest U.S. markets.” 

Six additional markets each reported more than 10,000 rooms Under Contract for the month: Houston, Texas (18,069 rooms); Dallas, Texas (15,088 rooms); Miami/Hialeah, Florida (13,033 rooms); Los Angeles/Long Beach, California (12,354 rooms); Orlando, Florida (10,979 rooms); and Washington, D.C.-Maryland-Virginia (10,578 rooms). 

Seven markets in addition to New York each reported more than 3,000 rooms under construction: Houston (5,553 rooms); Los Angeles/Long Beach (4,630 rooms); Dallas (4,278 rooms); Las Vegas, Nevada (3,905 rooms); Miami/Hialeah (3,896 rooms); Washington, D.C. (3,339 rooms); and Chicago, Illinois (3,302 rooms). 

“New supply in Houston and lagging demand due to low oil prices will create significant headwinds for that market in 2016,” Bowers said. 

Three markets each reported fewer than 500 rooms under construction: Oahu Island, Hawaii (482 rooms); St. Louis, Missouri-Illinois (407 rooms); and Norfolk/Virginia Beach, Virginia (300 rooms). 

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

Market

Existing Supply

In Construction  January 2016

In Construction January 2015

In Construction YOY % change

New York, NY

117,847

14,544

14,272

+1.9%

Houston, TX

80,528

5,553

5,603

-0.9%

Los Angeles/Long Beach, CA

98,303

4,630

3,051

+51.8%

Dallas, TX

80,140

4,278

2,479

+72.6%

Las Vegas, NV

167,689

3,905

103

+3,691.3%

Miami/Hialeah, FL

51,841

3,896

3,983

-2.2%

Washington, DC-MD-VA

107,991

3,339

3,440

-2.9%

Chicago, IL

111,422

3,302

3,200

+3.2%

Seattle, WA

42,621

2,872

2,543

+12.9%

Denver, CO

43,591

2,756

1,719

+60.3%

Source: STR, Inc. / * Data as of 31 January 2016

 

About STR, Inc.

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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