STR’s February 2017 Pipeline Report shows 153,460 rooms in 540 hotel projects Under Contract in the Middle East and 58,374 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 1.3% increase in rooms Under Contract compared with February 2016. Specifically in the In Construction phase, the Middle East reported 83,106 rooms in 263 hotels. Based on number of rooms, that is a 3.4% increase in year-over-year comparisons.
The Under Contract total in Africa represents a 6.1% decrease in rooms Under Contract compared with February 2016. In the In Construction phase, Africa reported 29,084 rooms in 159 hotels. Based on number of rooms, that is a 1.6% decrease in year-over-year comparisons.
Two key markets in the Middle East and Africa region reported more than 10,000 rooms In Construction:
- Makkah, Saudi Arabia (22,370 rooms in 17 projects)
- Dubai, United Arab Emirates (19,578 rooms in 64 projects)
Europe hotel pipeline
STR’s February 2017 Pipeline Report shows 161,656 rooms in 1,027 hotel projects Under Contract in Europe. The total represents a 1.3% decrease in rooms Under Contract compared with February 2016.
STR’s February 2017 Pipeline Report shows 161,656 rooms in 1,027 hotel projects Under Contract in Europe. The total represents a 1.3% decrease in rooms Under Contract compared with February 2016.
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 72,888 rooms in 453 projects In Construction for the month. Based on number of rooms, that is a 15.9% increase in year-over-year comparisons.
Four European countries reported more than 5,000 rooms In Construction:
- United Kingdom (16,648 rooms in 122 projects)
- Germany (12,585 rooms in 61 projects)
- Turkey (8,270 rooms in 51 projects)
- Russia (7,906 rooms in 41 projects)
US hotel pipeline
STR’s February 2017 Pipeline Report shows 578,508 rooms in 4,775 hotel projects Under Contract in the United States. The total represents a 16.3% increase in the number of rooms Under Contract compared with February 2016.
STR’s February 2017 Pipeline Report shows 578,508 rooms in 4,775 hotel projects Under Contract in the United States. The total represents a 16.3% increase in the number of rooms Under Contract compared with February 2016.
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 194,455 rooms in 1,481 projects. Based on the number of rooms, that is a 29.3% increase in year-over-year comparisons.
“Hotel development activity continues to ramp up, and we’re now just 8% below the all-time construction peak reached in 2007,” said Bobby Bowers, STR’s senior VP for operations. “As expected, all of the new supply entering the market is affecting occupancy levels and hotelier pricing power.”
Among the Chain Scale segments, Upper Midscale (63,274 rooms in 618 hotels) accounted for the most rooms In Construction followed by Upscale (62,083 rooms in 463 hotels).
“Construction in the limited-service segment hasn’t cooled off, with more than 125,000 rooms being built between Upper Midscale and Upscale,” Bowers said. “Not only does that figure represent roughly two-thirds of all U.S. hotel construction, it also is a 24% increase from last February.”
Despite representing the lowest number of rooms in the pipeline, the Economy segment reported the largest percentage increase for rooms Under Contract (+122.9% to 11,013 rooms).
The Upper Upscale segment reported the largest percentage increase for rooms In Construction (+91.3% to 27,457 rooms).
U.S. pipeline by Chain Scale segment (number of rooms % change, February 2017 versus February 2016):
| Chain Scale | Existing Supply | % Change | In Construction | % Change | Under Contract | % Change |
| Luxury | 120,740 | +10.7% | 8,490 | +7.7% | 13,449 | +8.8% |
| Upper Upscale | 597,753 | +2.7% | 27,457 | +91.3% | 61,528 | +30.1% |
| Upscale | 708,490 | +5.5% | 62,083 | +27.7% | 158,649 | +14.6% |
| Upper Midscale | 919,847 | +2.8% | 63,274 | +22.2% | 189,159 | +12.4% |
| Midscale | 479,933 | +1.4% | 8,399 | +47.7% | 53,352 | +71.7% |
| Economy | 781,048 | -0.1% | 2,357 | +77.8% | 11,013 | +122.9% |
| Unaffiliated | 1,515,576 | -1.2% | 22,395 | +7.9% | 91,358 | -3.9% |
| Total | 5,123,387 | +1.5% | 194,455 | +29.3% | 578,508 | +16.3% |
Central/South America hotel pipeline
STR’s February 2017 Pipeline Report shows 61,272 rooms in 392 hotel projects Under Contract in the Central/South America region. The total represents a 17.9% decrease in rooms Under Contract compared with February 2016.
STR’s February 2017 Pipeline Report shows 61,272 rooms in 392 hotel projects Under Contract in the Central/South America region. The total represents a 17.9% decrease in rooms Under Contract compared with February 2016.
Under Contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Unconfirmed stage.
The region reported 27,804 rooms in 173 projects In Construction for the month. Based on number of rooms, that is a 17.0% decrease in year-over-year comparisons.
Five of the region’s countries each reported more than 1,000 rooms In Construction:
- Brazil (16,154 rooms in 92 projects)
- Colombia (3,333 rooms in 21 projects)
- Chile (1,503 rooms in 11 projects)
- Argentina (1,206 rooms in 10 projects)
- Peru (1,110 rooms in seven projects)
Caribbean/Mexico hotel pipeline
STR’s February 2017 Pipeline Report shows 35,772 rooms in 203 hotel projects Under Contract in the Caribbean/Mexico region. The total represents a 12.2% increase in rooms Under Contract compared with February 2016.
STR’s February 2017 Pipeline Report shows 35,772 rooms in 203 hotel projects Under Contract in the Caribbean/Mexico region. The total represents a 12.2% increase in rooms Under Contract compared with February 2016.
Under Contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Unconfirmed stage.
The region reported 13,943 rooms in 80 projects In Construction for the month. Based on number of rooms, that is a 3.1% decrease in year-over-year comparisons.
Two countries in the region reported more than 1,000 rooms In Construction:
- Mexico (9,245 rooms in 63 projects)
- Bahamas (1,967 rooms in three projects)
