In its fall report, buoyed by a steady consumer-driven economy, analysts at Lodging Econometrics (LE) reported that the total U.S. construction pipeline stood at 5,704 projects/700,496 rooms, up 6% by projects and 8% by rooms year-over-year (YOY). Pipeline totals continue to climb closer to the all-time high of 5,883 projects/785,547 rooms reached in the second quarter of 2008, and are just 179 projects shy.
In its eighth consecutive quarter of growth, projects currently under construction stand at 1,729 projects/235,278 rooms, the highest count recorded since the second quarter of 2008. Projects scheduled to start construction in the next 12 months, currently 44% of all pipeline projects, was 2,479 projects/286,125 rooms, very close to the all-time high set in 2009. It’s up a whopping 16% in projects and 13% in rooms, YOY. Projects in the early planning stage stand at 1,496 projects/179,093 rooms.
But as a result of declines in commercial investment brought about by the indecision caused by the global slowdown and the prolonged tariff imbroglio, this is the second quarter in a row where construction starts have declined, an indicator that pipelines growth may top out in late 2020/2021.
Through the end of the third quarter, 704 new hotels with 81,111 rooms opened across the U.S. with another 299 projects/33,059 rooms expected to open by year-end. New hotel openings in the LE forecast for 2020 stand at 1,112 new hotels/122,702 rooms followed by 1,126 new hotels/130,447 rooms scheduled to open in 2021.
This quarter is the first time this cycle where supply growth at 2% has risen and drawn even with demand growth which has fallen to 2%. In 2019, 16 of the top 25 markets show occupancy declines YOY while 11 markets show RevPAR declines.
Related Stories
| Nov 3, 2011
OSHA Publishes Information on Rights and Safety
OSHA recently published new and revised information that explains workers’ and employers’ rights, as well as how to protect workers from hazards in the construction industry.
| Nov 3, 2011
Sierra Club Critical of Albuquerque Mayor’s Push to Weaken Green Code
The mayor’s plan to move to a less environmentally friendly code would mean confusion for people in the construction industry and a loss of energy efficiency and money for consumers, said Shrayas Jatkar of the Sierra Club.
| Nov 3, 2011
Lax Code Enforcement Blamed for Deaths in Turkey’s Earthquake
Despite tough safety codes approved a decade ago after earthquakes killed 18,000 people, lax enforcement led to hundreds of deaths after a recent earthquake in Turkey.
| Nov 3, 2011
International Green Construction Code Will Provide Template for Local Codes
A uniform code for green construction is being readied for publication in March.
| Oct 31, 2011
NIST issues new code requirements
Buildings taller than 420 feet are now required to include an extra exit stairwell or a specially designed elevator that occupants can use for evacuations.
| Oct 28, 2011
Los Angeles County mulling building codes for improving health
An ordinance would amend county building codes to promote better walking environments, encourage more bicycling, improve access to healthy foods (farmers markets, community gardens), and enhance project review requirements to ensure that developers include healthy-lifestyle components in their building plans.
| Oct 28, 2011
Bipartisan opposition to federal 3% withholding for contractors
Both major political parties and the Obama Administration support repealing a law that would withhold 3% of all government contracts.
| Oct 28, 2011
OSHA requires training module on top causes of construction deaths
The Occupational Health and Safety Administration (OSHA) now requires a training module on the top four causes of death for construction workers.
| Oct 28, 2011
New York City requiring building energy use to be posted online
Owners of every New York City commercial and residential building larger than 50,000 sf will have to post each building’s energy use online by 2013.
| Oct 28, 2011
New ISO standard for escalator safety
A new ISO standard specifies safety requirements for escalators and moving walks.
