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
| Aug 11, 2010
Webcor, Hunt Construction lead the way in mixed-use construction, according to BD+C's Giants 300 report
A ranking of the Top 30 Mixed-Use Contractors based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants
| Aug 11, 2010
Report: Fraud levels fall for construction industry, but companies still losing $6.4 million on average
The global construction, engineering and infrastructure industry saw a significant decline in fraud activity with companies losing an average of $6.4 million over the last three years, according to the latest edition of the Kroll Annual Global Fraud Report, released today at the Association of Corporate Counsel’s 2009 Annual Meeting in Boston. This new figure represents less than half of last year’s amount of $14.2 million.
| Aug 11, 2010
First CityCenter projects earn LEED Gold
CityCenter announced today that it has received three Leadership in Energy and Environmental Design LEED Gold certifications from the U.S. Green Building Council for: 1) ARIA Resort's hotel tower; 2) ARIA Resort's convention center and theater; 3) Vdara Hotel. ARIA and Vdara will open in December on the Las Vegas Strip and are the first of CityCenter's developments to be LEED certified.
| Aug 11, 2010
Jacobs, HDR top BD+C's ranking of the nation's 100 largest institutional building design firms
A ranking of the Top 100 Institutional Design Firms based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants
| Aug 11, 2010
Whiting-Turner, EMJ Corp. top BD+C's ranking of the nation's 40 largest retail contractors
A ranking of the Top 40 Retail Contractors based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants
| Aug 11, 2010
Nonprofit healthcare providers turn to real estate for liquidity and to preserve capital, says Jones Lang LaSalle report
Long considered to be stable investments immune to recession, hospitals and other healthcare facilities are now feeling the effects of a cash-strapped economy as decreased charitable contributions are forcing nonprofit hospitals to pare back and seek new financing sources, according to Jones Lang LaSalle’s 2009 Healthcare Real Estate Financing Outlook.
| Aug 11, 2010
Callison, MulvannyG2 among nation's largest retail design firms, according to BD+C's Giants 300 report
A ranking of the Top 75 Retail Design Firms based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants
| Aug 11, 2010
Colorado hospital wins LEED Gold
The main building of the Medical Center of the Rockies in Loveland, Colo., is a 136-bed regional medical center offering a full spectrum of services, with specialties in cardiac and trauma care. Constructed primarily of brick, native sandstone, and 85,000 sf of metal panels manufactured by Centria, the 600,000-sf main building, by Denver-based HLM Design, is one of the few hospitals in the nati...
| Aug 11, 2010
Design ups comfort, care in cancer center
A new cancer center is slated to open in fall 2011 at Banner Gateway Medical Center, Gilbert, Ariz. The three-story, 120,000-sf, $107 million cancer center will contain physician clinics, medical imaging, radiation oncology, infusion therapy, and support services. A/E firm Cannon Design has created a visually open, column-free interior to increase patient comfort and care.
| Aug 11, 2010
Charlotte hospital expands its surgery capabilities
The Chicago office of RTKL designed Carolinas HealthCare System's Mercy Medical Plaza, Charlotte, N.C. The 150,000-sf hospital houses 12 operating rooms with expanded pre-operative and recovery space, a pharmacy, and a central sterile processing unit. Tenant space occupies 75,000 sf. RTKL mimicked the materials and mass of older buildings on the campus but created a more modern look by using ex...