(Hendersonville/Tennessee, USA – October 16, 2012) The total active U.S. hotel development pipeline comprises 2,598 projects totaling 289,145 rooms, according to the September 2012 STR/McGraw Hill Construction Dodge Pipeline Report. This represents an 8.3-percent decrease in the number of rooms in the total active pipeline compared to September 2011. The total active pipeline data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Pre-Planning stage.
Among the Top 10 Markets by rooms in the In Construction phase, Los Angeles-Long Beach, California, reported the largest increase in rooms under construction, rising 208.2 percent with 1,005 rooms. Four other markets reported increases in rooms under construction of more than 10 percent: Denver, Colorado (+105.8 percent with 1,245 rooms); Atlanta, Georgia (+81.2% with 685 rooms); Chicago, Illinois (+67.8 percent with 1,775 rooms); and New York, New York (+27.2 percent with 9,354 rooms). Washington, D.C., reported the largest decrease in rooms under construction, falling 87.6 percent to 2,948 rooms.
“There were roughly 64,000 U.S. rooms under construction in September 2012, an increase of 18 percent from September 2011 but down 3.8 percent from August 2012,” said Bobby Bowers, senior VP of operations at STR. “The Top 10 U.S. markets accounted for more than one-third of the construction activity; New York was the runaway leader among the markets, with more than 9,000 rooms—approximately 15 percent of the U.S. total—in the ground. Interest rates are at historic lows, but lending standards are tough, keeping a lid on new supply growth. However, we expect to see new projects drift upward and push supply growth ahead in 2013.”