According to Lodging Econometrics’ (LE’s) Construction Pipeline Trend Report for the United States, the total U.S. construction pipeline stands at 5,216 projects/650,222 rooms. These are year-end 2020 results, and are down only incrementally, as the United States grappled with the ongoing coronavirus pandemic, an election, civil unrest, and the large and rapid partisan shift taking place. However, the announcement of various vaccine developments and distribution was undeniably good news for the general public, businesses, hotel development and the lodging industry as a whole, especially going forward. The industry has found optimism in the fact that as the vaccine rolls out travel demand will increase rather quickly, resulting in increased confidence in hotel development activity.
At the end of Q4 ‘20, projects currently under construction stand at 1,487 projects/199,700 rooms. Of the 1,487 projects under construction, 24% of these projects in the pipeline belong to extended-stay brands, a segment of the industry that developers have become increasingly interested in over the last few years. Projects under construction continue to move towards opening. Through year-end 2020, the U.S. opened 833 projects accounting for 97,203 rooms, bringing the U.S. supply of open & operating hotels to 58,569 hotels/5,557,119 rooms. Additionally, of the 833 projects opened in 2020, an impressive 29% of those projects belong to extended-stay brands.
LE is forecasting another 929 projects/107,407 rooms to open by the end of 2021. If all of these projects come to fruition it will represent a 1.9% increase in new hotel supply. For 2022, LE is forecasting 1,031 projects/116,749 rooms to open.
Projects scheduled to start construction in the next 12 months total 2,015 projects/234,703 rooms, down 12% by projects and 11% by rooms YOY. Projects in the early planning stage stand at 1,714 projects/215,819 rooms, a cyclical high in the number of rooms, and up slightly YOY.
It is also worth noting that renovations and brand conversions are becoming more prevalent. At the end of Q4 ‘20, there were a total 1,308 projects/210,124 rooms under renovation or conversion in the U.S. The number of projects and rooms has grown consistently over the last three quarters of 2020.
Related Stories
Hotel Facilities | Jul 26, 2023
Hospitality building construction costs for 2023
Data from Gordian breaks down the average cost per square foot for 15-story hotels, restaurants, fast food restaurants, and movie theaters across 10 U.S. cities: Boston, Chicago, Las Vegas, Los Angeles, Miami, New Orleans, New York, Phoenix, Seattle, and Washington, D.C.
Market Data | Jul 24, 2023
Leading economists call for 2% increase in building construction spending in 2024
Following a 19.7% surge in spending for commercial, institutional, and industrial buildings in 2023, leading construction industry economists expect spending growth to come back to earth in 2024, according to the July 2023 AIA Consensus Construction Forecast Panel.
Contractors | Jul 13, 2023
Construction input prices remain unchanged in June, inflation slowing
Construction input prices remained unchanged in June compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics Producer Price Index data released today. Nonresidential construction input prices were also unchanged for the month.
Contractors | Jul 11, 2023
The average U.S. contractor has 8.9 months worth of construction work in the pipeline, as of June 2023
Associated Builders and Contractors reported that its Construction Backlog Indicator remained unchanged at 8.9 months in June 2023, according to an ABC member survey conducted June 20 to July 5. The reading is unchanged from June 2022.
Market Data | Jul 5, 2023
Nonresidential construction spending decreased in May, its first drop in nearly a year
National nonresidential construction spending decreased 0.2% in May, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.06 trillion.
Apartments | Jun 27, 2023
Average U.S. apartment rent reached all-time high in May, at $1,716
Multifamily rents continued to increase through the first half of 2023, despite challenges for the sector and continuing economic uncertainty. But job growth has remained robust and new households keep forming, creating apartment demand and ongoing rent growth. The average U.S. apartment rent reached an all-time high of $1,716 in May.
Industry Research | Jun 15, 2023
Exurbs and emerging suburbs having fastest population growth, says Cushman & Wakefield
Recently released county and metro-level population growth data by the U.S. Census Bureau shows that the fastest growing areas are found in exurbs and emerging suburbs.
Contractors | Jun 13, 2023
The average U.S. contractor has 8.9 months worth of construction work in the pipeline, as of May 2023
Associated Builders and Contractors reported that its Construction Backlog Indicator remained unchanged at 8.9 months in May, according to an ABC member survey conducted May 20 to June 7. The reading is 0.1 months lower than in May 2022. Backlog in the infrastructure category ticked up again and has now returned to May 2022 levels. On a regional basis, backlog increased in every region but the Northeast.
Industry Research | Jun 13, 2023
Two new surveys track how the construction industry, in the U.S. and globally, is navigating market disruption and volatility
The surveys, conducted by XYZ Reality and KPMG International, found greater willingness to embrace technology, workplace diversity, and ESG precepts.
| Jun 5, 2023
Communication is the key to AEC firms’ mental health programs and training
The core of recent awareness efforts—and their greatest challenge—is getting workers to come forward and share stories.
