STR’s October 2016 Pipeline Report shows 153,206 rooms in 1,007 projects Under Contract in Europe. The total represents a 14.9% increase in rooms Under Contract compared with October 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 66,787 rooms in 442 projects In Construction for the month, which is a 21.6% increase in year-over-year comparisons.
Europe’s largest hotel market, Greater London, England, reported the most rooms In Construction with 6,217 rooms in 36 hotels. Three other key markets reported more than 2,000 rooms In Construction: Moscow, Russia (4,012 rooms in 17 hotels); Istanbul, Turkey (3,596 rooms in 20 hotels); and Greater Berlin, Germany (2,779 rooms in nine hotels).
Middle East and Africa hotel pipeline
STR’s October 2016 Pipeline Report shows 158,714 rooms in 554 projects Under Contract in the Middle East and 57,740 rooms in 310 projects Under Contract in Africa.
STR’s October 2016 Pipeline Report shows 158,714 rooms in 554 projects Under Contract in the Middle East and 57,740 rooms in 310 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 an 11.7% increase in rooms Under Contract compared with October 2015. Specifically in the In Construction phase, the Middle East reported 84,477 rooms in 260 hotels, a 9.1% increase in year-over-year comparisons.
The Under Contract total in Africa represents a 7.8% increase in rooms Under Contract compared with October 2015. Specifically in the In Construction phase, Africa reported 30,032 rooms in 164 hotels, an 8.3% increase in year-over-year comparisons.
Among key markets in the Middle East and Africa, Makkah, Saudi Arabia (24,090 rooms in 15 projects), reported the most rooms In Construction. Dubai, United Arab Emirates (19,687 rooms in 67 hotels), was the only other market to report more than 10,000 rooms In Construction.
US hotel pipeline
STR’s October 2016 Pipeline Report shows 554,226 rooms in 4,561 projects Under Contract in the United States. The total represents a 21.8% increase in the number of rooms Under Contract compared with October 2015.
STR’s October 2016 Pipeline Report shows 554,226 rooms in 4,561 projects Under Contract in the United States. The total represents a 21.8% increase in the number of rooms Under Contract compared with October 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 183,371 rooms in 1,403 projects, a 32.4% increase in year-over-year comparisons.
Among the Chain Scale segments, Upscale (60,599 rooms in 442 hotels) accounted for the most rooms In Construction followed by Upper Midscale (58,011 rooms in 576 hotels).
“Upscale and Upper Midscale chains account for 65% of all construction activity in the U.S. and 71% of all rooms in the Final Planning phase,” said Bobby Bowers, STR’s senior VP for operations. “Both of those segments maintained demand growth through the first three quarters of the year, and we’re forecasting more demand growth in the coming years. But like the industry as a whole, supply growth is going to outweigh demand. How hoteliers view their pricing power in that environment will be important to monitor.”
Despite representing the lowest number of rooms in the pipeline, the Economy segment reported the largest percentage increases for rooms In Construction (+86.6% to 3,208 rooms) and Under Contract (+93.5% to 10,437 rooms).
“Upper Upscale reported a pretty significant spike (+85.3%) in construction activity as well, especially considering the number of actual rooms in that stage of the pipeline,” Bowers said. “Overall, each of the seven sectors, with the exception of Luxury, posted a double-digit increase in construction for the month. The influx of new supply is continuing across the board.”
U.S. pipeline by Chain Scale segment (number of rooms % change, October 2016 versus October 2015)
| Chain Scale | Existing Supply | % Change | In Construction | % Change | Under Contract | % Change |
| Luxury | 111,199 | +3.3% | 7,234 | -1.6% | 11,961 | +0.8% |
| Upper Upscale | 588,754 | +1.7% | 23,285 | +85.3% | 52,093 | +46.2% |
| Upscale | 700,671 | +7.0% | 60,599 | +24.2% | 154,736 | +16.4% |
| Upper Midscale | 917,257 | +3.7% | 58,011 | +29.2% | 181,618 | +21.9% |
| Midscale | 474,799 | -0.3% | 7,470 | +43.1% | 46,932 | +55.9% |
| Economy | 780,103 | -0.1% | 3,208 | +86.6% | 10,437 | +93.5% |
| Unaffiliated | 1,522,665 | -1.2% | 23,564 | +31.1% | 96,449 | +7.2% |
| Total | 5,095,448 | +1.4% | 183,371 |
