Ed Brock is an award-winning journalist who has worked for various U.S. newspapers and magazines, including with American City & County magazine, a national publication based in Atlanta focused on city and county government issues. He is currently senior editor at Asian Hospitality magazine, the top U.S. publication for Asian American hoteliers. Originally from Mobile, Alabama, Ed began his career in journalism in the early 1990s as a reporter for a chain of weekly newspapers in Baldwin County, Alabama. After a stint teaching English in Japan, Ed returned to the U.S. and moved to the Atlanta area where he returned to journalism, coming to work at Asian Hospitality in 2016.
THE U.S. HOTEL construction pipeline continued to grow in the third quarter, up 7 percent year-over-year by projects and rooms, according to Lodging Econometrics(LE). The growth was moderate, with current project count 3 percent below and rooms 14 percent below the all-time high of 5,883 projects and 785,547 rooms reached in the second quarter of 2008.
There were a total of 5,704 projects and 672,676 rooms in the construction pipeline by the end of the quarter, according to LE’s Construction Pipeline Trend Report for the U.S. That’s up from 5,572 projects with 660,061 rooms at the end of the second quarter.
There were 1,063 projects with 140,331 rooms under construction at the close of the third quarter, an increase of 8 percent by projects and 4 percent by rooms YOY. Projects scheduled to start construction in the next 12 months stand at 2,234 projects with 257,729 rooms, up 8 percent YOY by projects and 9 percent by rooms. Projects and rooms in the early planning stage each increased 7 percent to stand at 2,407 projects with 274,616 rooms, just 27 projects and 5,296 rooms shy of the all-time high.
“Analysts at LE report that the upper midscale chain scale has the largest project count of all chain scales in the total U.S. construction pipeline, accounting for 38 percent of the projects and standing at 2,149 projects and 209,895 rooms at the third quarter’s close,” LE said in a statement. “Following is the upscale chain scale with 1,376 projects with 170,943 rooms at the close of the quarter. Together, these two chain scales comprise 62 percent of all projects and 57 percent of the rooms in the total U.S. hotel construction pipeline.”
Also, 2,176 project and 223,518 rooms in the pipeline are extended stay projects, making up 38 percent of projects in the total pipeline. Middle tier extended-stay brands make up the majority of projects in the segment for the quarter, accounting for 63 percent of projects in the total extended stay pipeline and 24 percent of projects in the total U.S. pipeline.
Conversions hit the highest counts ever recorded by LE, ending the quarter at 1,100 projects with 146,757 rooms. Combined, the renovation and conversion active pipeline accounts for 1,912 projects and 285,568 rooms, a peak total room count at the end of the quarter, and LE analysts expect this trend to continue over the next two years.
“Through the third quarter, 345 new hotels with 41,115 rooms opened in the U.S. with another 182 hotels with 24,790 rooms anticipated to open by the end of the year,” the research firm said. “LE analysts forecast a total of 527 new hotels with 65,905 rooms to open in 2023, representing a 1.2 percent increase in new hotel supply. LE analysts expect new hotel openings to increase in 2024 and 2025, representing a 1.4 percent and 1.5 percent supply increase, respectively.”
Sonesta launched Americas Best Value Studios, an extended-stay version of ABVI.
The model targets owners seeking limited front desk and housekeeping.
The brand meets demand for longer-term, value-focused stays.
SONESTA INTERNATIONAL HOTELS Corp. launched Americas Best Value Studios by Sonesta, an extended-stay version of its franchised brand, Americas Best Value Inn. The model targets owners seeking limited front desk and housekeeping, optional fitness center and lobby market along with standard brand requirements.
The brand aims to address the growing demand for longer-term, value-driven accommodations, Sonesta said in a statement.
"Americas Best Value Studios by Sonesta represents a strategic evolution of our trusted Americas Best Value Inn brand," Keith Pierce, Sonesta’s executive vice president and president of franchise development, said. "We are expanding our offerings to directly address the increasing demand within the extended-stay segment, providing a practical solution for travelers seeking longer-term lodging at value. This new brand type allows our local franchised owner-operators to tap into a growing market while maintaining the community-focused experience that Americas Best Value Inn is known for."
ABVI has a majority presence in secondary and tertiary markets, the statement said.
The extended-stay brand’s operational model features a front desk, bi-weekly housekeeping, on-site laundry and pet-friendly accommodations, Sonesta said. Guests can also earn or redeem points through the Sonesta Travel Pass loyalty program.
In August, Sonesta named Stayntouch its preferred property management system after a two-year review of its ability to support the company’s franchise model. The company operates more than 1,100 properties with more than 100,000 rooms across 13 brands on three continents.
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