The City of Angels continues to be the City of Hotels. Los Angeles is expected to add 14 hotels with nearly 3,100 rooms in the second half of 2020, and a total of 50 hotels with 10,436 rooms in the next four years, according to the TopHotelProjects construction database. Of those 50 hotels, 33 will be in the four-star category, and 17 will be in the five-star designation.
For the fourth consecutive quarter, Los Angeles was the top hotel construction market, with 163 projects and 27,415 rooms in its pipeline in the second quarter of 2020, according to Portsmouth, N.H.-based Lodging Econometrics.
Trailing L.A. was Dallas, with 158 projects and 19,314 rooms in its pipeline; New York City, with 151 projects and 26,302 rooms; Atlanta, with 135 projects and 18,634 rooms; and Houston, with 122 projects and 12,486 rooms.
These five markets accounted for 15% of the rooms in the U.S. hotel pipeline. The country’s total hotel construction pipeline stood at 5,582 projects and 687,801 rooms in the second quarter, down only 1% from the same period a year ago. “Contrary to what is being experienced in hotel operations, the pipeline remains robust as interest rates are at all-time lows,” states Lodging Econometrics.
New York had the greatest number of projects under construction in the second quarter: 106 with 18,354 rooms. L.A. was next, with 48 projects and 8,077 rooms being built., followed by Atlanta, Dallas, and Nashville (37 projects and 6,597 rooms). These five markets accounted for nearly one-fifth of the rooms under construction in the U.S.
All told, 1,771 projects with 235,467 rooms were under construction nationwide, up 3% and 1%, respectively, from the second quarter in 2019.
During the first half of this year, the U.S. opened 313 hew hotels with 36,992 rooms, and added 481 projects with 56,823 rooms to its pipeline. However, new project announcements in the second quarter fell by 53% compared to the same period last year.
OPPORTUNE FINANCING MAKES HOTEL RENOS AND CONVERSIONS MORE VIABLE
Lodging Econometrics also recorded 1,276 active renovation and conversion projects with an aggregate 217,865 rooms across the country. Chicago lead the way with 28 projects and 4,717 rooms, followed by Los Angeles, New York, Washington D.C., and Atlanta.
Nationwide, there were 1,465 active renovation projects with 314,043 rooms, and 1,196 active conversion projects with 136,110 rooms in the first half of this year.
Despite the impact COVID-19 has had on operating performance, development in the lodging industry continues. In the first half of 2020, Dallas recorded the highest count of new projects announced into the pipeline with 18 projects and 2,018 rooms. Washington D.C. followed with 14 projects and 1,978 rooms, then Phoenix with 13 projects and 1,397 rooms, Miami with 10 projects and 2,472 rooms, and the Florida Panhandle with nine projects and 1,178 rooms.
Related Stories
| Aug 11, 2010
'Feebate' program to reward green buildings in Portland, Ore.
Officials in Portland, Ore., have proposed a green building incentive program that would be the first of its kind in the U.S. Under the program, new commercial buildings, 20,000 sf or larger, that meet Oregon's state building code would be assessed a fee by the city of up to $3.46/sf. The fee would be waived for buildings that achieve LEED Silver certification from the U.
| Aug 11, 2010
Five-star resort breaks ground on the Black Sea
Construction work has commenced on a five-star resort and leisure destination along the Black Sea coast in Batumi, Georgia. The RTKL-designed resort consists of two towers rising 86 and 58 meters over a two-story podium. The larger tower contains 250 guestrooms and suites while the smaller tower offers 78 residential apartments.
| Aug 11, 2010
Outdated office tower becomes Nashville's newest boutique hotel
A 1960s office tower in Nashville, Tenn., has been converted into a 248-room, four-star boutique hotel. Designed by Earl Swensson Associates, with PowerStrip Studio as interior designer, the newly converted Hutton Hotel features 54 suites, two penthouse apartments, 13,600 sf of meeting space, and seven "cardio" rooms.
| Aug 11, 2010
New hospital expands Idaho healthcare options
Ascension Group Architects, Arlington, Texas, is designing a $150 million replacement hospital for Portneuf Medical Center in Pocatello, Idaho. An existing facility will be renovated as part of the project. The new six-story, 320-000-sf complex will house 187 beds, along with an intensive care unit, a cardiovascular care unit, pediatrics, psychiatry, surgical suites, rehabilitation clinic, and ...
| Aug 11, 2010
Aloft hotel opens at Washington National Harbor
A partnership of five developers, including the John Hardy Group and Peterson Companies, have completed a 190-room aloft hotel at Washington National Harbor, a mixed-use retail/entertainment development in Oxon Hill, Md., near Washington, D.C. Designed in conjunction with David Rockwell and the Rockwell Group, the aloft prototype offers atmospheric public spaces designed to draw guests from the...
| Aug 11, 2010
D.C. gets sweeter with expanded green eatery
Greens Restaurant Group has expanded its popular salad and yogurt eatery, sweetgreen, to two neighborhoods in the Washington, D.C., area, Dupont Circle and Bethesda, Md. Designed by local architect CORE architecture + design, the experiential dining projects use salvaged hickory for the walls, wood recycled from the old bowling alleys for the tables and chairs, and sustainable paper/dye product...
| Aug 11, 2010
Manhattan's latest boutique hotel will be LEED Silver certified
New York-based developer Tribeca Associates has commissioned Brennan Beer Gorman Architects to design its latest mixed-use office and boutique hotel at 330 Hudson Street. Located in the downtown Hudson Square area of Manhattan, the LEED-Silver development will involve the redevelopment of a historic, eight-story warehouse building into 292,000 sf of office space, 15,000 sf of retail space, and ...
| Aug 11, 2010
Manhattan's Gouverneur Healthcare Services tops out renovation, expansion
One year after breaking ground, the Building Team for the renovation and expansion of the Gouverneur Healthcare Services facility on Manhattan's Lower East Side topped out the $180 million project. Designed by New York-based RMJM, the development involves a 316,000-sf renovation and 108,000-sf addition that will house a 295-bed nursing facility and five-story ambulatory care center.
| Aug 11, 2010
Decline expected as healthcare slows, but hospital work will remain steady
The once steady 10% growth rate in healthcare construction spending has slowed, but hasn't entirely stopped. Spending is currently 1.7% higher than the same time last year when construction materials costs were 8% higher. The 2.5% monthly jobsite spending decline since last fall is consistent with the decline in materials costs.
