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
Giants 400 | Aug 21, 2022
Top 110 Architecture/Engineering Firms for 2022
Stantec, HDR, HOK, and Skidmore, Owings & Merrill top the rankings of the nation's largest architecture engineering (AE) firms for nonresidential and multifamily buildings work, as reported in Building Design+Construction's 2022 Giants 400 Report.
Giants 400 | Aug 20, 2022
Top 180 Architecture Firms for 2022
Gensler, Perkins and Will, HKS, and Perkins Eastman top the rankings of the nation's largest architecture firms for nonresidential and multifamily buildings work, as reported in Building Design+Construction's 2022 Giants 400 Report.
Giants 400 | Aug 19, 2022
2022 Giants 400 Report: Tracking the nation's largest architecture, engineering, and construction firms
Now 46 years running, Building Design+Construction's 2022 Giants 400 Report rankings the largest architecture, engineering, and construction firms in the U.S. This year a record 519 AEC firms participated in BD+C's Giants 400 report. The final report includes more than 130 rankings across 25 building sectors and specialty categories.
Hotel Facilities | Aug 12, 2022
Denver builds the nation’s first carbon-positive hotel
Touted as the nation’s first carbon-positive hotel, Populus recently broke ground in downtown Denver.
Hotel Facilities | Jul 28, 2022
As travel returns, U.S. hotel construction pipeline growth follows
According to the recently released United States Construction Pipeline Trend Report from Lodging Econometrics (LE), the total U.S. construction pipeline stands at 5,220 projects/621,268 rooms at the close of 2022’s second quarter, up 9% Year-Over-Year (YOY) by projects and 4% YOY by rooms.
Hotel Facilities | May 31, 2022
Checking out: Tips for converting hotels to housing
Many building owners are considering repositioning their hotels into another property type, such as senior living communities and rental apartments. Here's advice for getting started.
Sponsored | Multifamily Housing | May 8, 2022
Choosing the right paver system for rooftop amenity spaces
This AIA course by Hoffmann Architects offers best practices for choosing the right paver system for rooftop amenity spaces in multifamily buildings.
Sponsored | BD+C University Course | May 3, 2022
For glass openings, how big is too big?
Advances in glazing materials and glass building systems offer a seemingly unlimited horizon for not only glass performance, but also for the size and extent of these light, transparent forms. Both for enclosures and for indoor environments, novel products and assemblies allow for more glass and less opaque structure—often in places that previously limited their use.
Hotel Facilities | Apr 25, 2022
U.S. hotel construction pipeline up 2%, with 5,090 projects in the works
The total U.S. hotel construction pipeline stands at 5,090 projects and 606,302 rooms at the end of the first quarter of 2022, up 2% by projects, but down 3% by rooms, according to the Q1 2022 Construction Pipeline Trend Report for the United States from Lodging Econometrics (LE).
Market Data | Apr 14, 2022
FMI 2022 construction spending forecast: 7% growth despite economic turmoil
Growth will be offset by inflation, supply chain snarls, a shortage of workers, project delays, and economic turmoil caused by international events such as the Russia-Ukraine war.
