The luxury and upper upscale tiers are showing the most new-build activity in the US hotel industry, according to a November pipeline report by STR/McGraw Hill Construction Dodge.

However, the industry has still seen a significant decrease in the total active pipeline, a trend that is expected to continue through next year.

The total active US hotel development pipeline in November comprises 2,861 projects totaling 310,196 rooms, said the report. ‘This represents a 6.3-percent decrease in the number of rooms in the total active pipeline compared to November 2010. The total active pipeline data includes projects in three stages: in construction, final planning and planning stages.’

Among the chain scale segments, the luxury segment reported the largest increase in rooms in the total active pipeline, increasing 48.5 percent with 5,910 rooms.

Two other segments reported increases in the number of rooms in the total active pipeline: the upper upscale segment (up 5.0 percent with 19,926 rooms) and the upscale segment (up 4.1 percent with 78,301 rooms). The unaffiliated segment ended the month with the largest decrease in rooms in the total active pipeline, falling 13.5 percent to 89,568 rooms.

The luxury segment reported the largest increase in rooms under construction, rising 113.5 percent to 1,657 rooms, followed by the upscale segment (up 30.8 percent to 16,140 rooms) and the unaffiliated segment (up 17.2 percent to 9,133 rooms).

The midscale segment reported a 56.6-percent decrease in rooms under construction to 2,954 rooms.

 

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