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STR Global Reports Worldwide Hotel Development Pipeline for August 2009

Vacation News » Vacation & Leisure Real Estate Edition | By Michael Gerrity | September 18, 2009 11:15 AM ET



(News Source: STR Global)

Central - South America Markets

(LONDON, UK) -- The Central/South America hotel development pipeline includes 145 projects with 21,750 rooms, according to the August 2009 STR Global Construction Pipeline Report released this week.

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Duane Vinson

"Nearly half of all hotel development under way in the region is taking place in Brazil," said Duane Vinson, vice president at STR. "With almost 4,000 rooms currently in the In Construction phase and another 6,000 in waiting, there is no reason to doubt that the current levels will be sustained for the foreseeable future. Panama is very active in Central America, with seven hotels in the In Construction phase and six other projects to begin soon."

Among the key markets, Panama City, Panama, ended the month with the largest amount of rooms in the In Construction phase with 1,318 rooms. Three additional markets reported more than 500 rooms in the In Construction phase for the month: Buenos Aires, Argentina (951); Sao Paulo, Brazil (854 rooms); and Bogota, Columbia (841 rooms).

Among the Chain-Scales, three segments accounted for close to 70 percent of the total active pipeline: The Economy segment reported 5,481 guestrooms (25.2 percent); the Upper Upscale pipeline comprised 4,869 rooms (22.4 percent); and the upscale segment made up 22.2 percent with 4,837 rooms.
 
Central/South America pipeline by Chain-Scale segment for August 2009 (number of rooms):

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Asia - Pacific Markets

The Asia/Pacific hotel development pipeline includes 997 hotels with 239,313 rooms, according to the August 2009 STR Global Construction Pipeline Report released this week.
 
"Hotel construction continues to be strong in the region," said Duane Vinson, vice president at STR. "The amount of development seen in China and India is truly astounding, with nearly 170,000 rooms in the active pipeline. Thailand and Bangkok specifically are experiencing heavy development with over 6,000 rooms in the In Construction phase and approximately 11,000 in the active pipeline."

Among the key markets, Shanghai, China, reported the most rooms in total active pipeline with 14,944, followed by Bangkok, Thailand, with 9,687 rooms. Beijing, China, also reported more than 5,000 rooms in the total active pipeline with 6,536 rooms. Five markets reported less than 500 rooms: Melbourne, Australia (398 rooms); Seoul, South Korea (344 rooms); Osaka, Japan (274 rooms); Tokyo, Japan (160 rooms); and Brisbane, Australia (156 rooms).

Within the Chain-Scale segments, the Upper Upscale segment accounted for the largest portion of the total active pipeline with 23.9 percent of rooms (57,180) rooms, followed by the Upscale segment with 23.6 percent of rooms (56,531 rooms). The Economy segment and the Midscale without Food and Beverage segment accounted for the smallest percentage of the total active pipeline: The Economy segment reported 4.5 percent of total rooms (10,839 rooms), and the Midscale without Food and Beverage segment reported 2.6 percent (6,126 rooms).

Asia/Pacific pipeline by Chain-Scale segment for August 2009 (number of rooms):    

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Caribbean - Mexico Markets

The Caribbean/Mexico hotel development pipeline includes 141 hotels with 18,535 rooms, according to the August 2009 STR Construction Pipeline Report released this week.

"At the Caribbean Hotel & Tourism Investment Conference held earlier this year in Bermuda, the general sentiment was that development would dwindle to a virtual trickle in the Caribbean in 2009 and 2010," said Duane Vinson, vice president at STR. "It appears that earlier projections are now a reality. With fewer than 50 projects in the active pipeline, new projects have come to a standstill."

Among the countries in the region, Mexico reported the largest amount of rooms in the In Construction phase (5,289), as well as in the total active pipeline (10,810). Puerto Rico followed with 1,163 rooms in the In Construction phase and 1,627 rooms in the total active pipeline. The Bahamas also ended the month with more than 1,000 rooms in the total active pipeline with 1,439.

Among the Chain-Scale segments, the Upper Upscale segment made up the largest percentage of the total active pipeline with 23.3 percent of the rooms (4,313 rooms). The Midscale without Food and Beverage segment accounted for 20.7 percent of the total active pipeline with 3,836 rooms. The Midscale with Food and Beverage (8.6 percent with 1,602 rooms) and the Economy segments (6.1 percent with 1,125 rooms) made up the smallest portions of the total active pipeline.

Caribbean/Mexico pipeline by Chain-Scale segment for August 2009 (number of rooms):

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European Market

The European hotel development pipeline includes 585 hotels comprising 94,259 rooms, according to the August 2009 STR Global Construction Pipeline Report released this week.

"We continue to see growth in much of Europe," said Duane Vinson, vice president at STR. "By the end of this year, we expect another 123 properties to open. Upscale chains such as NH Hotels and Courtyard by Marriott are dominant in the major markets."

Three European countries account for more than 50 percent of the rooms in the In Construction phase as well as the total active pipeline: Germany ended the month with 6,264 rooms in the In Construction phase and 19,610 rooms in the total active pipeline; the United Kingdom reported 9,055 rooms in the In Construction phase; and 18,005 in the total active pipeline and Russia accounted for 6,806 rooms in the In Construction phase and 13,755 in the total active pipeline.

The Economy segment reported the largest portion of rooms in the total active pipeline, with 23.7 percent (22,311 rooms), followed by the Upscale segment with 23.1 percent (21,741 rooms). The Luxury segment (9.1 percent and 8,591 rooms) and the Midscale without Food and Beverage segment (6.9 percent and 6,509 rooms) accounted for the least amount of rooms in the total active pipeline.

Europe pipeline by Chain-Scale segment for August 2009 (number of rooms):        

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Middle East/Africa Markets

The Middle East/Africa hotel development pipeline includes 468 hotels comprising 126,464 rooms, according to the August 2009 STR Global Construction Pipeline Report released last week.

"In the Middle East, the United Arab Emirates is exploding on the scene with four times the projects in the In Construction phase compared with its closest competitor, Saudi Arabia," said Duane Vinson, vice president at STR. "With 54 projects currently being built in Dubai alone, they are poised to be a major factor in the pipeline for years to come."

The United Arab Emirates had 59,543 rooms in the total active pipeline, the largest amount of any country in the region. Saudi Arabia also accounted for a large portion with 11,110 rooms.

Four of the seven Chain-Scale segments accounted for over 80 percent of the rooms in the total active pipeline. The Luxury segment had the largest percent, accounting for 25.1 percent (31,706 rooms). The Unaffiliated segment made up 24.3 percent (30,739 rooms). The Upscale segment (21.2 percent and 26,829) and the Upper Upscale segment (17.2 percent and 21,791 rooms) also were responsible for a large portion of the total active pipeline. The Midscale without Food and Beverage segment accounted for the smallest portion of the total active pipeline: 1.2 percent and 1,503 rooms.

Middle East/Africa pipeline by Chain-Scale segment for August 2009 (number of rooms):

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