US Q1 Hotel Pipeline Steady as Demand Grows
The total number of US hotel construction projects in the development pipeline at the end of the first quarter was 2 percent higher than one year prior, but the number of hotel rooms in the pipeline declined 3 percent, according to a new report from Lodging Econometrics.
The total first-quarter US hotel construction pipeline stood at 5,090 projects, representing about 606,300 rooms. About 960 projects representing about 128,800 rooms are currently under construction, down 27 percent and 28 percent year over year, respectively. Conversely, about
Meanwhile, projects and rooms in early planning comprising 2,218 projects and 254,500 rooms were in the early planning stages, a first-quarter record and up 24 percent and 12 percent year over year, respectively.
“New projects and development planning that was previously on hold are now getting the green light from investors and developers with buoyed confidence thanks to rather robust domestic leisure travel during the first part of the year,” according to Lodging Econometrics. “With stronger domestic leisure travel in the US, along with the albeit slower revival of corporate and group travel, there is growing confidence in the recovery.”
About 63 percent of the total US hotel construction pipeline is concentrated in the upper and upper-midscale tiers, a typical share, according to Lodging Econometrics. However, the renovation or conversion pipeline totaled 1,420 projects representing 184,700 rooms, an all-time high and up 59 percent and 48 percent, respectively, from the first quarter of 2021.
Marriott International in the first quarter had more US projects in the pipeline than any other hotel company, with 1,359 projects representing about 171,800 rooms. It was followed by Hilton Worldwide, with 1,287 projects and about 146,600 rooms, and IHG Hotels & Resorts, with 785 projects and about 79,000 rooms. Together, these three companies account for 67 percent of the projects and 66 percent of the rooms in the total U.S. construction pipeline.
Dallas led all US markets with 165 projects and 19,700 rooms in the first-quarter pipeline, followed by Atlanta with 135 projects and 17,600 rooms, Los Angeles with 123 projects and about 20,200 rooms and New York with 122 projects and about 20,800 rooms.
The total number of US hotel construction projects in the development pipeline at the end of the first quarter was 2 percent higher than one year prior, but the number of hotel rooms in the pipeline declined 3 percent, according to a new report from Lodging Econometrics. The total first-quarter US hotel construction pipeline stood…