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).
In the first quarter of 2022, there were 961 projects/128,784 rooms under construction, down 27% by projects and 28% by rooms YOY.
Projects scheduled to start in the next 12 months, at 1,911 projects/223,030 rooms, are up 2% by projects and 3% by rooms YOY. Projects and rooms in early planning reached a record high in the first quarter, standing at 2,218 projects/254,488 rooms, up 24% by projects and 12% by rooms YOY.
Notably, the upscale and upper-midscale chain scales dominate the pipeline in Q1 with 63% of projects in the total pipeline concentrated in these two chain scales. This has been the case for several years.
There were a total of 1,420 projects/184,692 rooms in the renovation or conversion pipeline in the U.S. during the first quarter. Project conversions and room conversions reached an all-time high in Q1, increasing 59% by projects and 48% by rooms YOY.
Hotel developers eager to break ground on new projects
New projects and development planning that was previously on hold are now getting the green light from investors and developers with buoyed confidence thanks to rather robust domestic leisure travel during the first part of the year. With stronger domestic leisure travel in the U.S., along with the albeit slower revival of corporate and group travel, there is growing confidence in the recovery. Developers are eager to move forward with plans and break ground as this upward trend in hotel business demand is expected to continue throughout 2022.
Through year-end 2021, the U.S. opened 826 projects accounting for 106,192 rooms. A total of 113 hotels/12,464 rooms opened in the first quarter of 2022. Over half of these opens, 68 hotels/7,154 rooms, were in suburban locations, but 41 hotels/4,703 rooms of newly opened hotels, or 36%, were in a top 25 market.
Reflective of the increasing number of projects in early planning and projects scheduled to start in the next 12 months, LE’s forecast for new hotel openings by projects has risen ever so slightly for 2023.
For the remainder of the year, LE forecasts another 649 projects/77,568 rooms to open for a total of 762 hotels/90,032 rooms in 2022, representing a 1.6% increase in new hotel supply. In 2023, LE forecasts an additional 839 hotels/93,169 rooms will open in the U.S., for a 1.6% supply increase.
Related Stories
| Aug 11, 2010
Accor North America launches green hotel pilot program
Accor North America, a division of Accor Hospitality, has announced that it will pilot the Green Key Eco-Rating Program within its portfolio in the United States in 2010. Green Key is the first program of its kind to rank, certify and inspect hotels and resorts based on their commitment to sustainable "green" practices; the Accor North America pilot will involve 20 properties.
| Aug 11, 2010
CTBUH changes height criteria; Burj Dubai height increases, others decrease
The Council on Tall Buildings and Urban Habitat (CTBUH)—the international body that arbitrates on tall building height and determines the title of “The World’s Tallest Building”—has announced a change to its height criteria, as a reflection of recent developments with several super-tall buildings.
| Aug 11, 2010
McHugh completes ultra-lux Capella Telluride hotel in Colorado
James McHugh Construction Co. has completed the new Capella Telluride hotel and condominium resort in Telluride, Colo., the first U.S. property for the new ultra-luxury Capella Hotels brand. Positioned to compete with the elite levels of luxury brands, the Capella Telluride features complex stone, stucco and wood exterior, heavy timber construction, and an abundance of high-level finishes and amenities.
| Aug 11, 2010
JE Dunn, Balfour Beatty among country's biggest institutional building contractors, according to BD+C's Giants 300 report
A ranking of the Top 50 Institutional 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
EwingCole to merge with healthcare specialist Robert D. Lynn Associates
EwingCole, a nationally recognized architectural, engineering, interior design, and planning firm with more than 320 professionals, today announced that it will combine its practice with Robert D. Lynn Associates of Philadelphia, a 40-person firm with a robust portfolio of healthcare projects. The combination will create the Delaware Valley¹s largest and most comprehensive firm with an emphasis on healthcare architecture, and a national scope and presence.
| Aug 11, 2010
Jacobs, Arup, AECOM top BD+C's ranking of the nation's 75 largest international design firms
A ranking of the Top 75 International 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
See what $3,000 a month will get you at Chicago’s Aqua Tower
Magellan Development Group has opened three display models for the rental portion of Chicago’s highly anticipated Aqua Tower, designed by Jeanne Gang. Lease rates range from $1,498 for a studio to $3,111 for a two-bedroom unit with lake views.
| Aug 11, 2010
Architecture Billings Index flat in May, according to AIA
After a slight decline in April, the Architecture Billings Index was up a tenth of a point to 42.9 in May. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending. Any score above 50 indicates an increase in billings.
