HOTEL DEVELOPERS ARE feeling a bit anxious these days, or so the numbers tell us.
Lodging Econometrics on Aug. 1 reported a moderate growth in the U.S. hotel construction pipeline in the second quarter of this year.
The pipeline totals 5,300 hotels (635,000 rooms), up 7 percent from the same quarter a year ago. It is still lower than the all-time reached in 2008, but a breakdown into categories shows where the activity has picked up in 2Q18.
Hotels in construction totaled 1,600 (209,000 rooms), the highest number since 2007. Hotels in early planning have seen a 25 increase in projects and an 18 percent increase in rooms – 1,400 hotels and 159,000 rooms.
“Both the increase in projects under construction and those in the early planning stage are reflective of the urgency developers currently have before the economy softens and/or interest rates further accelerate,” said Lodging Econometrics.