STR’s March 2017 Pipeline Report shows 571,311 rooms in 4,721 hotel projects Under Contract in the United States. The total represents a 14.4% increase in the number of rooms Under Contract compared with March 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 190,764 rooms in 1,449 projects. Based on the number of rooms, that is a 24.4% increase in year-over-year comparisons.
“Construction was actually down a bit from last month, but we’re still nearing the room construction peak (211,000 rooms) reached in 2007,” said Bobby Bowers, STR’s senior VP of operations. “Almost half (47.6%) of hotel room construction activity today is occurring in the major markets. And because room construction in 20 of those markets represents 3% or more of their respective existing supply, it’s no surprise to see muted performance growth.”
Among the Top 26 Markets, New York, New York, reported the most rooms Under Contract (28,166 rooms) and most rooms In Construction (15,911 rooms).
“Those almost 16,000 rooms account for 8% of all U.S. construction activity and just under 14% of New York City’s existing supply,” Bowers said.
Three additional markets each reported more than 15,000 rooms Under Contract for the month: Dallas, Texas (18,351 rooms); Houston, Texas (16,774 rooms); and Los Angeles/Long Beach, California (16,510 rooms).
Two of those markets reported more than 5,000 rooms In Construction: Dallas (7,184 rooms) and Los Angeles/Long Beach (5,924 rooms).
Two markets each reported fewer than 1,000 rooms In Construction: Norfolk/Virginia Beach, Virginia (456 rooms), and Oahu Island, Hawaii (180 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.
Logos, product and company names mentioned are the property of their respective owners.