Hotel project pipeline up 5% in January
Luxury leads the segment, followed by upscale
According to the January 2013 STR Pipeline Report, the total active U.S. hotel development pipeline comprises 2,637 projects totaling 307,289 rooms.
This represents a 4.9% increase in the number of rooms in the total active pipeline compared with January 2012, and a 38.3% increase in rooms under construction. The total active pipeline data includes projects in the construction, final planning, and planning stages but does not include projects in the pre-planning stage.
"Under construction rooms continue their steady climb, increasing about 7% from last month and more than 38% versus January 2012," said Bobby Bowers, Senior VP of Operations at STR. "Upscale and Upper Midscale brand dominance continues, accounting for almost 63% of rooms that have broken ground. Additionally, Luxury rooms under construction are up significantly from January 2012, perhaps reflecting confidence in the industry's sustained upward momentum. We expect supply growth to continue inching forward in 2013, with full year net growth of around 1%."
Among the Chain Scale segments, the Luxury segment reported the largest increase in rooms in the total active pipeline, rising 96.8% with 7,940 rooms, followed by the Upscale segment with a 10.7% increase to 82,412 rooms. Three markets reported double-digit decreases in the number of rooms in the total active pipeline: Upper Upscale segment (-22.5% with 15,339 rooms); the Midscale segment (-17.9% with 19,530 rooms); and the Economy segment (-11.2% with 4,002 rooms).