STR: US hotel pipeline for April 2017
STR: US hotel pipeline for April 2017
15 MAY 2017 7:55 AM

The U.S. reported 189,806 rooms in 1,456 hotel projects in construction during April 2017, according to STR. That total represents a 17.9% year-over-year increase in rooms in construction.

HENDERSONVILLE, Tennessee—STR’s April 2017 Pipeline Report shows 580,427 rooms in 4,843 hotel projects Under Contract in the United States. The total represents a 14.7% increase in the number of rooms Under Contract compared with April 2016.

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 189,806 rooms in 1,456 projects. Based on the number of rooms, that is a 17.9% increase in year-over-year comparisons.

“Activity is certainly up year over year, but we have actually seen total room construction numbers decrease for two straight months now,” said Bobby Bowers, STR’s senior VP for operations. “Year-over-year growth also is lower than this time last year, so while we won’t know for sure for another several months, perhaps we are seeing the beginning of a slowing development activity period.”

Looking at construction activity among the Chain Scale segments, Upper Midscale (64,269 rooms in 625 hotels) accounted for the most rooms In Construction followed by Upscale (59,979 rooms in 446 hotels).

“Limited service still accounts for roughly two-thirds of all hotel construction in the country,” Bowers said. “But the influx of new supply didn’t seem to upset Upscale and Upper Midscale performance during the first quarter. Helped by the Easter calendar shift, room demand growth was the highest in those two segments.”

Despite representing the lowest number of rooms in the pipeline, the Economy segment reported the largest percentage increase for rooms Under Contract (+124.6% to 10,626 rooms).

The Upper Upscale segment reported the largest percentage increase for rooms In Construction (+66.1% to 26,363 rooms).

North America Media Contacts:

Jeff Higley
VP, Digital Media & Communications
+1 (615) 824-8664 ext. 3318

Nick Minerd
Public Relations Manager
+1 (615) 824-8664 ext. 3305

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