Skip to content

Search

Latest Stories

LE: U.S. hotel construction pipeline marginally down in Q3

Many projects move on while developers remain cautious

THE LATEST REPORT by a global hotel intelligence firm has found out that the U.S. hotel construction pipeline was down slightly in the third quarter of this year.

The total number of hotels in the U.S. pipeline stands at 5,282 projects with 655,026 rooms, down 7 percent by projects and 6 percent by rooms in the third quarter, year-over-year, said the latest U.S. hotel construction pipeline trend report by Lodging Econometrics.


According to the report, projects currently under construction stand at 1,610 with 216,136 rooms, down 7 percent by projects and 8percent by rooms, respectively, when compared to last year.

During the third quarter, the U.S. opened 599 new hotels with 68,712 rooms with another 326 projects and 35,324 rooms anticipated to open by the end of 2020, totaling 925 projects and 104,036 rooms.

According to the report, hotel construction projects exiting the pipeline and moving to a cancelled or on hold status in the third quarter stood at 191 projects and 21,859 rooms.

Hotel projects in the U.S. scheduled to start construction in the next 12 months total 2,113 projects and 246,528 rooms, while projects in the early planning stage stand at 1,559 projects and 192,362 rooms, an increase not only YOY but quarter-over-quarter as well, the LE report said.

LE expects another 960 projects with 113,247 rooms to open in 2021.

“As expected, the hotel construction pipeline is off more substantially in Q3 as compared to Q2 in 2020. This is due largely in part to an acceleration of new hotel openings in Q2 as a result of a cyclical high number of projects under construction in Q1 that were delayed and later opened in the second quarter. Secondly, new project announcements continue to be muted,” the report said.

“Despite the decrease YOY, projects that are currently under construction continue to move forward towards their opening. New hotel openings continue to outpace projects moving to under construction. Developers with projects scheduled to start construction in the next 12 months continue to adjust their construction start and opening dates, minimize carrying costs, and plan to open in a more robust operating environment.”

LE’s previous report reported an increase in construction during the second quarter.

More for you

Peachtree Group loan
Photo credit: Peachtree Group

Peachtree backs $42M loan for AFC deal

Summary:

  • Peachtree provided a $42 million floating-rate loan to Banyan Street Capital for the acquisition and repositioning of Atlanta Financial Center in Buckhead.
  • The deal delivers capital at a reset basis, with comps pricing 98 percent higher, reflecting strong collateral and execution.
  • It recently launched a $250 million fund to invest in hotel and commercial assets mispriced from market illiquidity.

PEACHTREE GROUP PROVIDED its first mortgage loan to Banyan Street Capital for the acquisition and repositioning of the 914,774-square-foot Atlanta Financial Center in Buckhead, Georgia. Peachtree said the office sector is at an inflection point, similar to the retail segment previously.

Keep ReadingShow less
Trump’s Proposed Visa Fee Threatens Seasonal Hospitality Workforce

Report: Trump visa fee sparks summer staffing fears

Summary:

  • Trump’s proposed $250 Visa Integrity Fee faces pushback from groups relying on seasonal J-1 workers from Latin America and Asia.
  • J-1 visa holders often work as housekeepers, amusement park staff, and lifeguards from pre-season through Labor Day; more than 300,000 use the visa annually.
  • DHS and the State Department have not clarified how the fee will be implemented or who qualifies for a refund.

A $250 VISA Integrity Fee in President Donald Trump’s Big Beautiful Bill is drawing criticism from groups that rely on seasonal workers from Latin America and Asia on J-1 and other visas, Newsweek reported. The organizations warn the cost, though sometimes refundable, could reduce the summer workforce that supports U.S. beach towns and resorts.

Keep ReadingShow less
Wyndham & Grubhub Offer Free Delivery to Guests & Staff

Wyndham, Grubhub offer free delivery to guests, staff

Summary:

  • Wyndham Hotels & Resorts is partnering with Grubhub to offer free product delivery to guests and staff at nearly 6,000 U.S. hotels across 20 brands.
  • A Grubhub account is required to activate the complimentary Grubhub+ membership; no credit card is needed and the membership does not auto-renew.
  • Wyndham recently deployed Elavon’s cloud payments interface to more than 6,000 U.S. and Canadian franchisees.

WYNDHAM HOTELS & RESORTS and Grubhub, an online ordering and delivery platform, will offer item delivery to guests and staff with no delivery fees and other benefits. The service is available at nearly 6,000 U.S. hotels across 20 brands, with orders placed through the Grubhub app on-site or by scanning a hotel QR code.

Keep ReadingShow less
U.S. Hotel Construction Hits 20-Quarter Low in June

CoStar: Hotel construction drops in June

Summary:

  • U.S. hotel rooms under construction fell year over year for the sixth straight month in June, hitting a 20-quarter low, CoStar reported.
  • About 138,922 rooms were under construction, down 11.9 percent from June 2024; the luxury segment had 6,443 rooms, up 4.1 percent year over year.
  • Lodging Econometrics recently said Dallas led all U.S. markets in hotel construction pipelines at the end of the first quarter, with 203 projects and 24,496 rooms.

THE NUMBER OF U.S. hotel rooms under construction declined year over year for the sixth straight month in June, reaching a 20-quarter low, according to CoStar. Additionally, more than half of all rooms under development are in the South, mostly outside the top 25 markets.

Keep ReadingShow less
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