Skip to content

Search

Latest Stories

LE: U.S. construction pipeline hit record high in first quarter of 2024

Slightly over half of pipeline projects target upscale to midscale chain scales

LE: U.S. construction pipeline hit record high in first quarter of 2024

THE U.S. CONSTRUCTION pipeline reached a record level in the first quarter of 2024, according to Lodging Econometrics. The pipeline included 6,065 hotels with 702,990 rooms, showing a 9 percent year-over-year rise in hotels and a 7 percent increase in rooms compared to the previous year. Furthermore, each stage of the pipeline saw year-over-year growth in the first quarter.

LE's Q1 2024 U.S. Hotel Construction Pipeline Trend Report showed 1,144 hotels under construction, totaling 141,336 rooms—a 9 percent rise in hotels and a 1 percent increase in rooms compared to the previous year.


Hotels set to begin construction in the next 12 months total 2,259, comprising 260,968 rooms, reflecting a 10 percent increase in hotels and an 8 percent rise in rooms year over year, the report said.  Both hotel and room counts in the early planning stage increased by 9 percent year over year, reaching record-high figures of 2,662 hotels and 300,686 rooms, respectively.

Of all projects in the pipeline, slightly more than half are focused on the upscale, upper-midscale and midscale chain scales, LE said. In the first quarter, both the upper midscale and midscale segments achieved record-high numbers of hotels and rooms. Additionally, the luxury chain scale also attained a record-high total of projects in the same period.

Extended-stay brands' dominance

The latest data from LE highlighted the prevalence of extended-stay brands in the first quarter pipeline, a segment developers have increasingly favored in recent years. These brands now represent 37 percent of total hotels under construction, 41 percent of hotels scheduled to begin within the next 12 months, and 39 percent of projects in the early planning stage.

Sixty-three percent of the extended stay hotels in the pipeline are branded within the middle-tier extended-stay segment, the report added.

Meanwhile, renovation and brand conversion activities in the U.S. have experienced notable growth, reaching record-high combined totals of 2,041 hotels and 266,405 rooms, LE said. Brand conversions have notably hit a new record high of 1,235 projects with 114,680 rooms, marking a 14 percent year-over-year growth in hotels. Announced renovations in Q1 stand at 806 hotels and 151,725 rooms.

LE analysts expect this strong conversion and renovation activity to persist throughout 2024.

New openings

Around 114 new hotels opened in the U.S. in the first quarter, totaling 15,506 rooms, the report said. Among these, 72 hotels with 8,269 rooms were in suburban locations, while 60 hotels with 10,036 rooms, accounting for 53 percent of hotels and 65 percent of rooms, were within the top 50 markets.

Given the record number of projects in early planning and the rising number of projects scheduled to start in the next 12 months, LE analysts foresee modest growth in new hotel openings through 2024.

The LE forecast for the remainder of 2024 includes the opening of another 547 projects with 60,483 rooms, totaling 661 new hotels with 75,989 rooms and representing a 1.3 percent increase in new hotel supply by year-end. Looking ahead to 2025, LE analysts anticipate an additional 790 new hotels with 85,561 rooms to open in the U.S., resulting in a 1.5 percent supply increase.

LE's fourth quarter 2023 Global Hotel Construction Pipeline Trend Report underscored the U.S. and China's dominance, making up 64 percent of all global projects, with the U.S. leading at 39 percent. Among the top five cities with the largest construction pipelines, three are in the U.S.: Dallas, Atlanta, and Nashville.

More for you

G6 Hospitality Launches 24/7 Guest Support From August 1
Photo credit: G6 Hospitality

G6 launching 24x7 guest support on Aug. 1

Summary:

  • G6 Hospitality will launch 24x7 guest support on Aug. 1, expanding the current 18-hour window.
  • Escalations from phone, email and social media will be handled promptly by trained staff.
  • The service supports G6’s tech and service investments, including the AI-powered My6 app.

G6 HOSPITALITY, PARENT of Motel 6 and Studio 6, will launch a 24x7 customer support service for guests starting Aug. 1. The service extends the previous 18-hour window to full-day availability via phone, email and social media.

Keep ReadingShow less
U.S. travelers using mobile devices to book independent boutique hotel stays with personalized offers and smart tech in 2025

Study: Personalization boosts independent hotel bookings

Summary:

  • Around 95 percent of U.S. travelers are more likely to book independent hotels with personalized offers, according to TakeUp.
  • 59 percent plan more travel in 2025, with 78 percent favoring weekend getaways and 65 percent domestic trips.
  • Top booking deterrents are few reviews at 39 percent, unclear cleanliness or quality at 38 percent and inflexible cancellations at 29 percent.

PERSONALIZED OFFERS BASED on interests would make 95 percent of U.S. travelers more likely to book at an independent hotel, according to TakeUp, a revenue management platform for independent hotels. About 85 percent are open to technologies such as smart check-in, recommendations and AI-based pricing.

Keep ReadingShow less
Chart showing decline in U.S. extended-stay hotel occupancy and RevPAR in May 2025

Report: May fifth month for drop in extended-stay occupancy

Summary:

  • Extended-stay occupancy fell 2.2 percent in May, the fifth straight monthly decline; ADR and RevPAR also dropped for a second consecutive month.
  • May marked 44 straight months of supply growth for the segment at 4 percent or less, with annual growth below the 4.9 percent long-term average.
  • Extended-stay room revenues rose 0.5 percent, while total industry revenue grew 0.9 percent, led by segments with little extended-stay supply.

EXTENDED-STAY HOTEL occupancy fell 2.2 percent in May, the fifth consecutive monthly decline, exceeding the 0.7 percent drop reported for all hotels by STR/CoStar, according to The Highland Group. Extended-stay occupancy was 10.5 percentage points above the total hotel industry, at the lower end of the long-term average premium range.

Keep ReadingShow less
Auro Hotels Showcases India Culture at TCMU Exhibit

Auro unveils 'India Cultural Corner' for children

Summary:

  • Auro Hotels opened the India Cultural Corner, where children can check in and explore Indian culture at The Children's Museum of the Upstate.
  • Families can engage with community art, activities and storytelling about daily life in India.
  • The exhibit runs through May 2026, offering interactive learning on Indian culture.

AURO HOTELS RECENTLY opened the India Cultural Corner at The Children's Museum of the Upstate in Greenville, South Carolina, offering a look into Indian stories for American families. The exhibition, held at The Grand Geo Hotel and running through May 2026, includes a hotel desk where children can check in and explore Indian culture through interactive activities.

Keep ReadingShow less
U.S. Firms Lose $2.4 Trillion by Skimping on Business Travel

Report: Business travel gaps cost U.S. firms $2.4T

Summary:

  • U.S. companies risk losing more than $2.4 trillion in sales due to underinvestment in business travel, says GBTA.
  • An 8.3 percent T&E increase could drive a 6 percent sales gain, despite post-COVID virtual meeting tools.
  • Current T&E spending is $294 billion—$24 billion short of the $319.1 billion needed for peak profitability.

U.S. COMPANIES ARE missing more than $2.4 trillion in potential sales due to underinvestment in business travel, according to a Global Business Travel Association report. Despite a post-pandemic rebound, travel and entertainment spending remains $66 billion below 2019 levels.

Keep ReadingShow less