THE NUMBER OF hotel rooms in the final phase of development in the U.S. construction pipeline rose 8.3 percent in July over the same time last year, according to STR.
There were 1,573 projects with 205,992 rooms in construction in July, most in the upper midscale and upscale segments. Upper upscale projects represented the largest percentage increase of 22.6 percent, with 28,843 rooms under construction year over year. Upscale increased 3.7 percent with 61,753 rooms while upper midscale recorded a decrease of 0.5 percent with 64,128 rooms.
Five markets reported more than 6,000 rooms under construction.
New York had the largest amount of rooms in construction, 14,755, making up 11.8 percent of the total pipeline. It is followed by Las Vegas with 8,878 rooms or 5.3 percent of the pipeline; Orlando with 7,297 rooms making up 5.7 percent; Los Angeles/Long Beach with 6,150 rooms making up 5.9 percent; and finally Dallas with 6,014 rooms comprising 6.6 percent of the pipeline.
In May, 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.