Hotel construction in slump

U.S. hotel rooms under construction reached a 20-quarter low for the quarter ending in June, according to CoStar.

In June, the volume of U.S. hotel rooms under construction decreased year over year by 11.9%, the sixth consecutive month of decline. Hotel demand has been declining as economic uncertainty persists, and construction costs continue to rise.

The volume of U.S. hotel rooms in final planning (266,276 rooms) decreased slightly year over year in June. There was some room for optimism, though. The number of U.S. hotel rooms in the planning stage (349,802 rooms) increased 4.8% year over year.

Most of the rooms currently under construction are in the upscale and upper upscale segments.