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Published on : Saturday, December 17, 2016
STR’s November 2016 Pipeline Report shows 554,569 rooms in 4,570 projects Under Contract in the United States. The total represents a 21.2% increase in the number of rooms Under Contract compared with November 2015.
Under Contract data includes projects in the In Construction, Final Planning and Planning stages, but does not include projects in the Unconfirmed stage.
In the In Construction stage, the U.S. reported 182,929 rooms in 1,394 projects. Based on the number of rooms, that is a 29.4% increase in year-over-year comparisons. A large percentage of U.S. hotel construction activity (47.1%) continues in the Top 26 Markets by existing supply.
“Occupancy declines have been more consistent among the larger markets, and that is largely due to new supply that has entered those markets,” said Bobby Bowers, STR’s senior VP of operations. “Projects in the pipeline are likely to further affect occupancy levels and place more pressure on hoteliers’ pricing power.”
Among those Top 26 Markets, New York, New York, reported the most rooms Under Contract (29,147 rooms) and most rooms In Construction (15,276 rooms). Two additional markets each reported more than 15,000 rooms Under Contract for the month: Houston, Texas (18,020 rooms), and Dallas, Texas (16,571 rooms).
Four markets in addition to New York each reported more than 5,000 rooms In Construction: Dallas (6,582 rooms); Houston (5,608 rooms); Los Angeles/Long Beach, California (5,537 rooms); and Seattle, Washington (5,104 rooms).
“Three markets—New York (13.3%), Seattle (11.8%) and Denver (10.0%)—show a construction pipeline that represents more than 10% of their existing supply,” Bowers said.
Four markets each reported fewer than 1,000 rooms In Construction: St. Louis, Missouri-Illinois (806 rooms); Minneapolis/St. Paul, Minnesota, Wisconsin (763 rooms); Norfolk/Virginia Beach, Virginia (456 rooms); and Oahu Island, Hawaii (410 rooms).
Top 10 U.S. Markets (In Construction phase)
|Market||Existing Supply||In Construction
YOY % change
|New York, NY||114,961||15,276||13,301||+14.8%|
|Los Angeles/Long Beach, CA||98,650||5,537||4,240||+30.6%|
|Las Vegas, NV||162,291||3,950||3,905||+1.2%|