The total active U.S. hotel development pipeline comprises 2,877 projects totaling 349,317 rooms, according to the December 2013 STR Pipeline Report. This represents a 14.9-percent increase in the number of rooms in the total active pipeline compared with December 2012 and a 34.5-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 Top 25 Markets, New York, New York, reported the largest number of rooms under construction (11,189 rooms). Three other markets reported more than 2,000 rooms under construction: Washington, D.C. (2,819 rooms); Los Angeles-Long Beach, California (2,523 rooms); and Orlando, Florida (2,358 rooms).
“The New York market alone totaled more than 11,000 rooms, by far the most of any U.S. market and roughly 40 percent of the top 10,” said Bobby Bowers, senior VP of operations at STR. “Upscale and Upper Midscale made up 65 percent of New York’s room construction, while non-chain affiliated rooms accounted for another 25 percent.”
Four markets reported more than 100-percent increases in rooms under construction in year-over-year comparisons: Dallas, Texas (+367.2 percent); Seattle, Washington (+345.2 percent); Houston, Texas (+229.4 percent); and Los Angeles-Long Beach (+225.5 percent).
“Supply growth should not pose a significant threat to the overall industry’s continued recovery in 2014,” Bowers said. “However, selected markets\-\like New York, Washington, D.C., and Los Angeles-Long Beach -\will likely face supply-driven headwinds in the near term.”
The Central/South America hotel development pipeline comprises 305 hotels totalling 49,054 rooms, according to the December 2013 STR Global Construction Pipeline Report. 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. In 2013, 49 hotels comprising 7,153 rooms opened in the region. In 2014, 93 hotels with 14,849 rooms are expected to open. The most rooms are expected to open in the Upscale segment (4,799 rooms in 29 hotels), the Upper Midscale segment (3,001 rooms in 23 hotels) and the Midscale segment (2,385 rooms in 19 hotels).
The Caribbean/Mexico hotel development pipeline comprises 152 hotels totaling 24,487 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. In 2013, 18 hotels with 3,617 rooms opened in the region. During 2014, 48 hotels with 7,974 rooms are planned to open in the region. The majority of rooms are expected to open in the Unaffiliated segment (2,437 rooms in nine hotels). Three other segments are expected to open more than 1,000 rooms in 2014: the Luxury segment (1,755 rooms in seven hotels); the Upper Midscale segment (1,640 rooms in 15 hotels); and the Upscale segment (1,331 rooms in 11 hotels).
The Middle East/Africa hotel development pipeline comprises 498 hotels totalling 120,119 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 key markets, Dubai, United Arab Emirates, reported the largest number of rooms under construction (10,970 rooms). Five other markets reported more than 2,000 rooms under construction: Makkah, Saudi Arabia (6,927 rooms); Riyadh, Saudi Arabia (5,804 rooms); Doha, Qatar (4,944 rooms); Abu Dhabi, United Arab Emirates (3,036 rooms); and Jeddah, Saudi Arabia (2,569 rooms).
The Europe hotel development pipeline comprises 864 hotels totalling 142,953 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 countries in the region, Russia reported the largest number of rooms under construction (11,372 rooms). Following are: United Kingdom (10,285 rooms); Turkey (7,806 rooms); Germany (6,465 rooms); and the Netherlands (2,795 rooms).
