THE NUMBER OF hotel rooms in the final phase of U.S. development pipeline rose 9.9 percent in April over the same time last year, according to STR. This is the seventh consecutive month of growth in the industry and highest for any month since August 2017.
There were 1,575 projects with 203,890 rooms in construction in April. The upper midscale and upscale segments hold the majority of the country’s construction activity.
Upper upscale projects represented the largest increase of 12.2 percent with 24,543 rooms under construction year over year. Upscale recorded an increase of 4.9 percent with 61,347 rooms while upper midscale recorded an increase of 4.5 percent with 67,495 rooms.
Five markets reported more than 6,000 rooms under construction.
New York had the largest amount of rooms in construction, 13,976, making up 11.3 percent of the total pipeline. It is followed by Las Vegas with 8,435 rooms or 5.1 percent of the pipeline; Orlando with 7,310 rooms making up 5.7 percent; Dallas with 6,438 rooms making up 7.1 percent; and finally Los Angeles/Long Beach with 6,113 rooms comprising 5.8 percent of the pipeline.
Last week Lodging Econometrics reported that the U.S. pipeline grew 7 percent in terms of projects and 8 percent in terms of rooms during the first quarter of 2019 compared to last year, 4 percent beneath the peak seen in 2008’s second quarter.