STR reports hotel pipeline for September

HENDERSONVILLE, TENNESSEE - The total active U.S. hotel development pipeline comprises 2,767 projects totaling 333,775 rooms, according to the September 2013 STR Pipeline Report. This represents a 15.6-percent increase in the number of rooms in the total active pipeline compared with September 2012 and a 29.5-percent increase in rooms under construction. The total active pipeline data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Pre-Planning stage.

Among the Chain Scale segments, the Upper Upscale segment reported the largest increase in rooms in the total active pipeline, rising 45.5 percent with 22,689 rooms. Two other segments achieved double-digit increases in rooms in the total active pipeline: the Unaffiliated segment (+31.2 percent with 100,561 rooms) and the Upscale segment (+16.0 percent with 87,867 rooms). The Luxury segment reported the largest decrease in rooms in the active pipeline, falling 18.4 percent with 6,848 rooms.

Three segments reported increases in rooms under construction of 25 percent or more: the Upscale segment (+51.8 percent with 30,580 rooms); the Midscale segment (+35.2 percent with 3,863 rooms); and the Upper Midscale segment (+25.0 percent with 23,689 rooms). The Economy segment (-8.0 percent with 1,169 rooms) and the Upper Upscale segment (-1.9 percent with 7,417 rooms) were the only segments to report decreases in rooms under construction.

Caribbean/Mexico pipeline

Led by the Upper Midscale and Upscale segments, the Caribbean/Mexico hotel development pipeline comprises 132 hotels totaling 22,532 rooms. The total active pipeline includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Pre-Planning stage.

The Upper Midscale segment in the region has 34 hotels comprising 4,008 rooms in the active pipeline, followed by the Upscale segment (30 hotels comprising 4,920 rooms) and the Luxury segment (25 properties comprising 6,936 rooms).

Mexico, which has had 14 hotels comprising 2,007 rooms open during the past 12 months, has 87 hotels (12,666 rooms) in the active pipeline to lead the region. The Dominican Republican is second on the list with 11 hotels (2,455 rooms).

For the Caribbean/Mexico region, there are 17 properties (2,654 rooms) in the pre-planning stage, which means an architect has yet to be selected for the projects.

Central/South America pipeline

The Central/South America hotel development pipeline comprises 241 hotels totalling 36,367 rooms. The total active pipeline data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Pre-Planning stage.

Among the region’s countries, Brazil reported the most rooms in the total active pipeline with 23,118 rooms. Five other countries reported more than 1,000 rooms in the total active pipeline: Colombia (3,603 rooms); Panama (3,285 rooms); Argentina (2,411 rooms); Costa Rica (1,512 rooms); and Chile (1,283 rooms).

Europe pipeline

The Europe hotel development pipeline comprises 816 hotels totalling 135,006 rooms. The total active pipeline data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Pre-Planning stage.

Among the markets in the region, Manchester, United Kingdom, reported the largest expected supply growth (+25.3 percent) if all 3,451 rooms in the total active pipeline open. Six other markets reported expected growth of more than 10 percent: Moscow, Russia (+18.3 percent with 7,090 rooms); Istanbul, Turkey (+16.7 percent with 6,188 rooms); London, U.K. (+14.2 percent with 16,583 rooms); Amsterdam, Netherlands (+11.7 percent with 3,537 rooms); Birmingham, U.K. (+11.7 percent with 1,170 rooms); and Edinburgh, U.K. (+10.8 percent with 1,252 rooms).

MEA pipeline

The Middle East/Africa hotel development pipeline comprises 480 hotels totalling 117,642 rooms. The total active pipeline data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Pre-Planning stage.

Year-to-date, 49 hotels with 11,226 rooms have opened in the region. During the remainder of 2013, 71 more hotels with 18,064 rooms are expected to open. The Unaffiliated segment is expected to open the most rooms during the fourth quarter, with 26 hotels and 7,323 rooms, followed by the Upper Upscale segment (14 hotels with 4,339 rooms) and the Upscale segment (12 hotels with 2,655 rooms).

In 2014, 133 hotels with 27,759 rooms are expected to open in the region. The Upper Upscale segment plans to open the most rooms next year, with 7,568 rooms in 28 hotels, followed by the Upscale segment (28 hotels with 5,759 rooms) and the Luxury segment (26 hotels with 5,667 rooms.