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
Florida mixed-use complex includes retail, residential
The $325 million Atlantic Plaza II lifestyle center will be built on 8.5 acres in Delray Beach, Fla. Designed by Vander Ploeg & Associates, Boca Raton, the complex will include six buildings ranging from three to five stories and have 182,000 sf of restaurant and retail space. An additional 106,000 sf of Class A office space and a residential component including 197 apartments, townhouses, ...
| Aug 11, 2010
America's Greenest Hospital
Hospitals are energy gluttons. With 24/7/365 operating schedules and stringent requirements for air quality in ORs and other clinical areas, an acute-care hospital will gobble up about twice the energy per square foot of, say, a commercial office building. It is an achievement worth noting, therefore, when a major hospital achieves LEED Platinum status, especially when that hospital attains 14 ...
| Aug 11, 2010
3 Hospitals, 3 Building Teams, 1 Mission: Optimum Sustainability
It's big news in any city when a new billion-dollar hospital is announced. Imagine what it must be like to have not one, not two, but three such blockbusters in the works, each of them tracking LEED-NC Gold certification from the U.S. Green Building Council. That's the case in San Francisco, where three new billion-dollar-plus healthcare facilities are in various stages of design and constructi...
| Aug 11, 2010
Westin Hotel
Mid-twentieth-century projects are in a state of limbo. In many cities, safeguards against quick demolition don't even cover “new” buildings built after 1939, yet many such buildings may be obsolete by current standards. The Farmers and Mechanics Savings Bank, located in downtown Minneapolis, was one such building, a rare example of architecture from a time when American design was ...
| Aug 11, 2010
Platinum Award: Monumentally Hip Hotel Conversion
At one time the tallest building west of the Mississippi, the Foshay Tower has stood proudly on the Minneapolis skyline since 1929. Built by Wilbur Foshay as a tribute to the Washington Monument, the 30-story obelisk served as an office building—and cultural icon—for more than 70 years before the Ryan Companies and co-developer RWB Holdings partnered with Starwood Hotels & Resor...
| Aug 11, 2010
Hilton President Hotel
Once an elegant and fashionably trendy locale, the Presidential Hotel played host to the 1928 Republican National Convention where Herbert Hoover was nominated for President, and acted as a hot spot for Kansas City Jazz in the '30s and '40s. The hotel was eventually abandoned in 1984, at which point it became a haven for vagabonds and pigeons, collecting animal waste and incurring significant s...
| Aug 11, 2010
CityCenter Takes Experience Design To New Heights
It's early June, in Las Vegas, which means it's very hot, and I am coming to the end of a hardhat tour of the $9.2 billion CityCenter development, a tour that began in the air-conditioned comfort of the project's immense sales center just off the famed Las Vegas Strip and ended on a rooftop overlooking the largest privately funded development in the U.
| Aug 11, 2010
The softer side of Sears
Built in 1928 as a shining Art Deco beacon for the upper Midwest, the Sears building in Minneapolis—with its 16-story central tower, department store, catalog center, and warehouse—served customers throughout the Twin Cities area for more than 65 years. But as nearby neighborhoods deteriorated and the catalog operation was shut down, by 1994 the once-grand structure was reduced to ...
| Aug 11, 2010
Great Solutions: Healthcare
11. Operating Room-Integrated MRI will Help Neurosurgeons Get it Right the First Time A major limitation of traditional brain cancer surgery is the lack of scanning capability in the operating room. Neurosurgeons do their best to visually identify and remove the cancerous tissue, but only an MRI scan will confirm if the operation was a complete success or not.
| Aug 11, 2010
Gold Award: Westin Book Cadillac Hotel & Condominiums Detroit, Mich.
“From eyesore to icon.” That's how Reconstruction Awards judge K. Nam Shiu so concisely described the restoration effort that turned the decimated Book Cadillac Hotel into a modern hotel and condo development. The tallest hotel in the world when it opened in 1924, the 32-story Renaissance Revival structure was revered as a jewel in the then-bustling Motor City.
