According to a recent report by Lodging Econometrics (LE), the U.S. Construction Pipeline stands at 4,973 Projects/598,371 Rooms, with projects up 7% Year-Over-Year (YOY).
There are 1,520 Projects/198,710 Rooms Under Construction, up 10% YOY, and are the highest counts recorded this cycle. Projects Scheduled to Start Construction in the Next 12 Months, at 2,312 Projects/264,924 Rooms, are up 5% YOY. Projects in Early Planning are at 1,141 Projects/134,737 Rooms and are up 8%, YOY. However, it’s slightly down from last quarter which, so far, is the peak level this cycle.
For the economy, the rate of growth may be low but it’s running on all cylinders. So, too, with the Total Pipeline whose growth rate is also stalling.
20% increase in new supply forecast for 2017 in the U.S.
448 Hotels/50,521 Rooms have already opened in the U.S. with another 573 Projects/64,385 Rooms forecast to open by year-end according to analysts at Lodging Econometrics (LE). The Total 2017 Forecast for 1,021 Projects/114,906 Rooms, represents a 20% increase over the actual number of Hotel Openings in 2016, which stood at 849 Hotels/99,872 Rooms. 344 of the New Openings, or 34%, will be in the Top 25 Markets.
Almost half of the hotels that are expected to open this year are Upper Midscale, at 477 Projects/46,093 Rooms and another 289 Projects/37,914 Rooms are Upscale. These two chain scales represent 75% of the 1,021 projects anticipated to open through the end of 2017. 497 of the projects will be between 100 and 200 rooms, while 464 of the projects will be Suburban locations.
LE forecasts that 1,160 Projects/133,880 Rooms will open in 2018 and another 1,193 Projects/137,393 Rooms will open in 2019, still a distance from the annualized New Openings peak of 1,316 Projects/140,227 Rooms, set in 2009.
Related Stories
Hotel Facilities | Apr 24, 2024
The U.S. hotel construction market sees record highs in the first quarter of 2024
As seen in the Q1 2024 U.S. Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE), at the end of the first quarter, there are 6,065 projects with 702,990 rooms in the pipeline. This new all-time high represents a 9% year-over-year (YOY) increase in projects and a 7% YOY increase in rooms compared to last year.
Construction Costs | Apr 18, 2024
New download: BD+C's April 2024 Market Intelligence Report
Building Design+Construction's monthly Market Intelligence Report offers a snapshot of the health of the U.S. building construction industry, including the commercial, multifamily, institutional, and industrial building sectors. This report tracks the latest metrics related to construction spending, demand for design services, contractor backlogs, and material price trends.
Market Data | Apr 16, 2024
The average U.S. contractor has 8.2 months worth of construction work in the pipeline, as of March 2024
Associated Builders and Contractors reported today that its Construction Backlog Indicator increased to 8.2 months in March from 8.1 months in February, according to an ABC member survey conducted March 20 to April 3. The reading is down 0.5 months from March 2023.
K-12 Schools | Apr 10, 2024
Surprise, surprise: Students excel in modernized K-12 school buildings
Too many of the nation’s school districts are having to make it work with less-than-ideal educational facilities. But at what cost to student performance and staff satisfaction?
Multifamily Housing | Apr 9, 2024
March reports record gains in multifamily rent growth in 20 months
Asking rents for multifamily units increased $8 during the month to $1,721; year-over-year growth grew 30 basis points to 0.9 percent—a normal seasonal growth pattern according to Yardi Matrix.
Retail Centers | Apr 4, 2024
Retail design trends: Consumers are looking for wellness in where they shop
Consumers are making lifestyle choices with wellness in mind, which ignites in them a feeling of purpose and a sense of motivation. That’s the conclusion that the architecture and design firm MG2 draws from a survey of 1,182 U.S. adult consumers the firm conducted last December about retail design and what consumers want in healthier shopping experiences.
Market Data | Apr 1, 2024
Nonresidential construction spending dips 1.0% in February, reaches $1.179 trillion
National nonresidential construction spending declined 1.0% in February, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.179 trillion.
Market Data | Mar 26, 2024
Architecture firm billings see modest easing in February
Architecture firm billings continued to decline in February, with an AIA/Deltek Architecture Billings Index (ABI) score of 49.5 for the month. However, February’s score marks the most modest easing in billings since July 2023 and suggests that the recent slowdown may be receding.
K-12 Schools | Mar 18, 2024
New study shows connections between K-12 school modernizations, improved test scores, graduation rates
Conducted by Drexel University in conjunction with Perkins Eastman, the research study reveals K-12 school modernizations significantly impact key educational indicators, including test scores, graduation rates, and enrollment over time.
MFPRO+ News | Mar 16, 2024
Multifamily rents stable heading into spring 2024
National asking multifamily rents posted their first increase in over seven months in February. The average U.S. asking rent rose $1 to $1,713 in February 2024, up 0.6% year-over-year.
