U.S. Hotel Pipeline Grows by 14.9 Percent

U.S. Hotel Pipeline Grows by 14.9 Percent

Vacation News » North America Vacation News Edition | By WPJ Staff | January 17, 2014 12:14 PM ET

The total active U.S. hotel development pipeline increased by 14.9 percent in December, compared to the previous year, according to a report from STR Global. 

The pipeline -- projects in construction, final planning and planning stages -- includes 2,877 projects, totaling 349,317 rooms. The number of rooms under construction increased by 34.5 percent in December, compared to twelve months prior. 

New York, New York reported the largest number of rooms under construction (11,189 rooms), among the top 25 Markets. Three other markets reported more than 2,000 rooms under construction: Washington, D.C. (2,819 rooms); Los Angeles-Long Beach, California (2,523 rooms); and Orlando, Florida (2,358 rooms), STR reports.

The upscale and upper midscale segments made up 65 percent of New York's room construction, while non-chain affiliated rooms accounted for another 25 percent, the report states. 

Four markets reported more than 100 percent increases in rooms under construction in year-over-year comparisons: Dallas, Texas (+367.2 percent); Seattle, Washington (+345.2 percent); Houston, Texas (+229.4 percent); and Los Angeles-Long Beach (+225.5 percent).

"Supply growth should not pose a significant threat to the overall industry's continued recovery in 2014," Bobby Bowers, senior VP of operations at STR said. "However, selected markets--like New York, Washington, D.C., and Los Angeles-Long Beach--will likely face supply-driven headwinds in the near term."

By comparison, the hotel pipeline for Central and South America for December included 305 hotels with 49,054 rooms. The region recorded a total of 49 hotel openings with 7,153 rooms in 2013. 

The Caribbean/Mexico hotel development pipeline included 152 hotels with 24,487 rooms in December. In all of 2013, 18 hotels with 3,617 rooms opened in the region.

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