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
Market Data | Jun 3, 2016
JLL report: Retail renovation drives construction growth in 2016
Retail construction projects were up nearly 25% year-over-year, and the industrial and office construction sectors fared well, too. Economic uncertainty looms over everything, however.
Market Data | Jun 2, 2016
ABC: Nonresidential construction spending down in April
Lower building material prices, a sluggish U.S. economy, and hesitation among private developers all factor into the 2.1% drop.
Market Data | May 20, 2016
Report: Urban area population growth slows
Older Millennials are looking to buy homes and move away to more affordable suburbs and exurbs.
Market Data | May 17, 2016
Modest growth for AIA’s Architecture Billings Index in April
The American Institute of Architects reported the April ABI score was 50.6, down from the mark of 51.9 in the previous month. This score still reflects an increase in design services.
Market Data | Apr 29, 2016
ABC: Quarterly GDP growth slowest in two years
Bureau of Economic Analysis data indicates that the U.S. output is barely growing and that nonresidential investment is down.
Market Data | Apr 20, 2016
AIA: Architecture Billings Index ends first quarter on upswing
The multi-family residential sector fared the best. The Midwest was the only U.S. region that didn't see an increase in billings.
Building Technology | Apr 11, 2016
A nascent commercial wireless sensor market is poised to ascend in the next decade
Europe and Asia will propel that growth, according to a new report from Navigant.
Industry Research | Apr 7, 2016
CBRE provides latest insight into healthcare real estate investors’ strategies
Survey respondents are targeting smaller acquisitions, at a time when market cap rates are narrowing for different product types.
Market Data | Apr 4, 2016
ABC: Nonresidential spending slip in February no cause for alarm
Spending in the nonresidential sector totaled $690.3 billion on a seasonally adjusted, annualized basis in February. The figure is a step back but still significantly higher than one year ago.
Market Data | Mar 30, 2016
10 trends for commercial real estate: JLL report
The report looks at global threats and opportunities, and how CRE firms are managing their expectations for growth.
