According to the latest U.S. Hotel Construction Pipeline Trend Report by Lodging Econometrics (LE), the total U.S. hotel construction pipeline, at the end of Q3 2020, stands at 5,282 projects/655,026 rooms, down 7% by projects and 6% by rooms, year-over-year (YOY).
As expected, the hotel construction pipeline is off more substantially in Q3 2020 as compared to Q2 2020. This is due largely in part to an acceleration of new hotel openings in Q2 2020 as a result of a cyclical high number of projects under construction in Q1 2020 that were delayed and later opened in Q2 '20.
Secondly, new project announcements continue to be muted. Projects exiting the pipeline and moving to a cancelled or on hold status in Q3 2020 stood at 191 projects/21,859 rooms.
Developers continue to closely monitor the impact the coronavirus will have on travel demand, how quickly a widespread vaccine will roll out, and the outcome of the U.S. presidential and congressional elections. It is expected that as these events and timelines provide more clarity for developers, they will begin to more confidently move forward with their development activity.
Projects currently under construction stand at 1,610 projects/216,136 rooms, down 7% by projects and 8% by rooms, YOY. Despite the decrease YOY, projects that are currently under construction continue to move forward toward their opening. New hotel openings continue to outpace projects moving to under construction. Projects scheduled to start construction in the next 12 months total 2,113 projects/246,528 rooms.
Developers with projects scheduled to start construction in the next 12 months continue to adjust their construction start and opening dates, minimize carrying costs, and plan to open in a more robust operating environment.
Lodging Econometrics continues to track development timeline changes in its database. Projects in the early planning stage stand at 1,559 projects/192,362 rooms, an increase not only YOY but quarter-over-quarter as well.
Through the third quarter of 2020, the U.S. opened 599 new hotels with 68,712 rooms with another 326 projects/35,324 room anticipated to open by the end of 2020, totaling 925 projects/104,036 rooms. For 2021, LE expects another 960 projects/113,247 rooms to open.
Dallas leads U.S. hotel construction pipeline
The top five U.S. markets with the largest total hotel construction pipelines are:
• Dallas - 154 projects/18,592 rooms
• Los Angeles - 150 projects/25,188 rooms
• New York City - 144 projects/25,147 rooms
• Atlanta - 134 projects/18,670 rooms
• Houston - 109 projects/11,384 rooms.
These top five markets account for 15% of the rooms in the total U.S. pipeline. Twenty of the Top 50 markets in the U.S. have more than 50 projects in their hotel construction pipelines.
There are currently seven markets in the United States that have 30 or more projects under construction in their pipelines:
• New York City - 105 projects/18,453 rooms
• Atlanta - 44 projects/6,483 rooms
• Dallas - 42 projects/5,086 rooms
• Los Angeles - 41 projects/7,278 rooms
• Nashville - 33 projects/5,532 rooms
• Orlando - 31 projects/5,107 rooms
• Austin - 30 projects/5,228 rooms
Of the top 50 Markets in the U.S., there are 20 markets, including the seven directly listed above, that have 20 or more projects under construction in the pipeline.
Related Stories
| Mar 9, 2011
North Korea resumes construction of 'world's worst' hotel
Is North Korea finally serious about completing construction of Ryu-Gyong Hotel—once called the world’s worst building—after years of neglect and secrecy?
| Mar 9, 2011
Igor Krnajski, SVP with Denihan Hospitality Group, on hotel construction and understanding the industry
Igor Krnajski, SVP for Design and Construction with Denihan Hospitality Group, New York, N.Y., on the state of hotel construction, understanding the hotel operators’ mindset, and where the work is.
| Mar 9, 2011
Fast food franchises are taking the LEED
Starbucks, Arby’s, and McDonald’s are among the top when it comes to fast food franchises implementing sustainability practices. This article takes a look at the green paths these three brands are taking, and how LEED factors into their business and their future.
| Feb 15, 2011
Iconic TWA terminal may reopen as a boutique hotel
The Port Authority of New York and New Jersey hopes to squeeze a hotel with about 150 rooms in the space between the old TWA terminal and the new JetBlue building. The old TWA terminal would serve as an entry to the hotel and hotel lobby, which would also contain restaurants and shops.
| Feb 9, 2011
Hospital Construction in the Age of Obamacare
The recession has hurt even the usually vibrant healthcare segment. Nearly three out of four hospital systems have put the brakes on capital projects. We asked five capital expenditure insiders for their advice on how Building Teams can still succeed in this highly competitive sector.
| Jan 25, 2011
AIA reports: Hotels, retail to lead U.S. construction recovery
U.S. nonresidential construction activity will decline this year but recover in 2012, led by hotel and retail sectors, according to a twice-yearly forecast by the American Institute of Architects. Overall nonresidential construction spending is expected to fall by 2% this year before rising by 5% in 2012, adjusted for inflation. The projected decline marks a deteriorating outlook compared to the prior survey in July 2010, when a 2011 recovery was expected.
| Jan 25, 2011
InterContinental Hotels Group gets LEED pre-certification
InterContinental Hotels Group, the world's largest hotel group by number of rooms, announced that its in-house sustainability system Green Engage has been awarded LEED volume pre-certification established from the USGBC and verified by the Green Building Certification Institute. IHG is the first hotel company to receive this award for an existing hotels program.
| Jan 19, 2011
San Diego casino renovations upgrade gaming and entertainment
The Sycuan Casino in San Diego will get an update with a $27 million, 245,000-sf renovation. Hnedak Bobo Group, Memphis, Tenn., and Cleo Design, Las Vegas, drew design inspiration from the historic culture of the Sycuan tribe and the desert landscape, creating a more open space with better circulation. Renovation highlights include a new “waterless” water entry feature and new sports bar and grill, plus updates to gaming, poker, off-track-betting, retail, and bingo areas. The local office of San Francisco-based Swinerton Builders will provide construction services.
| Jan 19, 2011
Extended stay hotel aims to provide comfort of home
Housing development company Campus Apartments broke ground on a new extended stay hotel that will serve the medical and academic facilities in Philadelphia’s University City, including the University of Pennsylvania and the Children’s Hospital of Philadelphia. The 11,000-sf hotel will operate under Hilton’s Homewood Suites brand, with 136 suites with full kitchens and dining and work areas. A part of the city’s EnergyWorks loan program, the project aims for LEED with a green roof, low-flow fixtures, and onsite stormwater management. Local firms Alesker & Dundon Architects and GC L.F. Driscoll Co. complete the Building Team.
| Jan 4, 2011
Luxury hotel planned for Palace of Versailles
Want to spend the night at the Palace of Versailles? The Hotel du Grand Controle, a 1680s mansion built on palace grounds for the king's treasurer and vacant since the French Revolution, will soon be turned into a luxury hotel. Versailles is partnering with Belgian hotel company Ivy International to restore the dilapidated estate into a 23-room luxury hotel. Guests can live like a king or queen for a while—and keep their heads.
