THE U.S. HOTEL construction pipeline recorded its eighth consecutive quarter of growth in the third quarter and stands at 5,704 projects and 700,496 rooms.
The pipeline is up 6 percent by projects and 8 percent by rooms year over year, reported Lodging Econometrics. That is 179 projects below the all-time high of 5,883 projects, and 785, 547 rooms reached in the second quarter of 2008 and the eighth consecutive year of growth.
The quarter’s growth is a little less than the 7 percent by projects and 8 percent by rooms seen in the first quarter of the year.
There are 1,729 projects and 235,278 rooms are currently under construction, the eighth consecutive quarter of growth, the highest count recorded since the second quarter of 2008. This is up 16 percent in projects and 13 percent in rooms.
The pipeline also saw the openings of 704 new hotels with 81,111 rooms through the end of the quarter with another 299 projects and 33,059 rooms are expected to open by the end of the year.
However, this is the second quarter in a row with a decline in construction and the report marks it as an indicator that pipeline growth may top out in late 2020-21.
Projects in the early planning stage stand at 1,496 projects and 179, 093 rooms. The forecast for new hotel openings for 2020 stand at 1,112 hotels and 122,702 rooms, followed by 1,126 hotels and 130, 447 rooms for 2021.
The quarter also witnessed a 2 percent increase in supply growth and a 2 percent decrease in demand growth.