STR’s December 2016 Pipeline Report shows 155,434 rooms in 1,017 projects Under Contract in Europe. The total represents a 4.0% decrease in rooms Under Contract compared with December 2015.
Under Contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Unconfirmed stage.
Europe reported 68,777 rooms in 442 projects In Construction for the month. Based on number of rooms, that is a 13.1% increase in year-over-year comparisons.
Among Chain Scale segments, the Upper Midscale segment accounted for the largest portion of rooms Under Contract (27.2% with 42,332 rooms) and In Construction (24.7% with 16,981 rooms).
Upscale (22.7% with 15,580 rooms) was the only other segment to represent 20.0% or more of rooms In Construction.
Europe pipeline by Chain Scale (number of rooms)
| Chain Scale | Existing Supply | In Construction | Under Contract |
| Luxury | 80,583 | 5,020 | 7,606 |
| Upper Upscale | 272,033 | 11,544 | 23,465 |
| Upscale | 533,595 | 15,580 | 34,446 |
| Upper Midscale | 423,430 | 16,981 | 42,332 |
| Midscale | 292,801 | 3,540 | 8,292 |
| Economy | 262,129 | 9,816 | 17,198 |
| Unaffiliated | 2,811,711 | 6,296 | 22,095 |
| Total | 4,676,282 | 68,777 | 155,434 |
Middle East and Africa hotel pipeline
STR’s December 2016 Pipeline Report shows 158,441 rooms in 555 projects Under Contract in the Middle East and 57,626 rooms in 309 projects Under Contract in Africa.
STR’s December 2016 Pipeline Report shows 158,441 rooms in 555 projects Under Contract in the Middle East and 57,626 rooms in 309 projects Under Contract in Africa.
Under Contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Unconfirmed stage.
The Under Contract total in the Middle East represents a 7.2% increase in rooms Under Contract compared with December 2015. Specifically in the In Construction phase, the Middle East reported 84,519 rooms in 264 hotels. Based on number of rooms, that is a 4.3% increase in year-over-year comparisons.
The Under Contract total in Africa represents a 5.1% decrease in rooms Under Contract compared with December 2015. Specifically in the In Construction phase, Africa reported 29,546 rooms in 160 hotels. Based on number of rooms, that is a 6.3% increase in year-over-year comparisons.
Among key markets in the Middle East and Africa, Makkah, Saudi Arabia (23,060 rooms in 14 projects), reported the most rooms In Construction. Dubai, United Arab Emirates (20,451 rooms in 69 projects), was the only other market to report more than 10,000 rooms In Construction.
A note to editors: As of 1 March 2016, all references to STR data and analysis should cite “STR” as the source. Please refrain from citing “STR, Inc.” “Smith Travel Research” or “STR Global” in sourcing as those names no longer fit within the updated STR brand.
US hotel pipeline
STR’s December 2016 Pipeline Report shows 560,199 rooms in 4,621 projects Under Contract in the United States. The total represents a 19.4% increase in the number of rooms Under Contract compared with December 2015.
STR’s December 2016 Pipeline Report shows 560,199 rooms in 4,621 projects Under Contract in the United States. The total represents a 19.4% increase in the number of rooms Under Contract compared with December 2015.
Under Contract data includes projects in the In Construction, Final Planning and Planning stages, but does not include projects in the Unconfirmed stage.
In the In Construction stage, the U.S. reported 186,965 rooms in 1,424 projects. Based on the number of rooms, that is a 32.9% increase in year-over-year comparisons.
Among the Chain Scale segments, Upscale (61,565 rooms in 450 hotels) accounted for the most rooms In Construction followed by Upper Midscale (59,990 rooms in 592 hotels).
“Development trends remained the same throughout the year - limited service is by far the most popular segment for new projects with 65% of all construction activity in the U.S.,” said Bobby Bowers, STR’s senior VP for operations. “Most of the more than 120,000 rooms set to come online in the Upscale and Upper Midscale segments are expected to hit the market in 2017, and with occupancy levels forecasted to dip, we expect hoteliers to be focused in on pricing power in the coming months.”
Despite representing the lowest number of rooms in the pipeline, the Economy segment reported the largest percentage increase for rooms Under Contract (+125.6% to 11,073 rooms).
The Upper Upscale segment reported the largest percentage increase for rooms In Construction (+105.2% to 23,646 rooms).
“Aside from Luxury, all segments were well into double-digit construction growth for the month,” Bowers said.
U.S. pipeline by Chain Scale segment (number of rooms % change, December 2016 versus December 2015)
| Chain Scale | Existing Supply | % Change | In Construction | % Change | Under Contract | % Change |
| Luxury | 112,286 | +3.5% | 7,526 | +1.2% | 12,712 | +10.1% |
| Upper Upscale | 591,054 | +1.2% | 23,646 | +105.2% | 52,434 | +34.8% |
| Upscale | 706,653 | +7.0% | 61,565 | +25.1% | 153,993 | +13.6% |
| Upper Midscale | 922,503 | +3.8% | 59,990 | +24.7% | 183,828 | +16.3% |
| Midscale | 475,256 | -0.8% | 8,828 | +65.9% | 51,221 | +68.3% |
| Economy | 782,220 | -0.3% | 2,584 | +90.0% | 11,073 | +125.6% |
| Unaffiliated | 1,523,362 | -0.7% | 22,826 | +28.6% | 94,938 | +5.8% |
| Total | 5,113,334 | +1.5% | 186,965 | +32.9% | 560,199 | +19.4% |
