U.S. Hotel Pipeline Construction Dips 8% Year-over-year in March 2011

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According to the March 2011 STR/McGraw Hill Construction Dodge Pipeline Report, the total active U.S. hotel development pipeline comprises 3,095 projects totaling 325,407 rooms.

This represents an 8.2-percent decrease in the number of rooms in the total active pipeline compared to March 2010. The total active pipeline data includes projects in the In Construction, Final Planning and Planning stages, but does not include projects in the Pre-Planning stage.

"Developers continue to focus on key U.S. destination markets for growth," said Lana Yoshii, VP of content management at STR. "Of the top 10 largest hotel markets in the U.S., New York City--the fifth largest market--leads the charge with the most rooms under construction (6,763 rooms). With this addition, the market's room supply will increase by almost 7 percent. Orlando and Washington, D.C., have approximately 2,600 rooms under construction, which will increase their inventories by more than two percent. Although Las Vegas has the most hotel rooms currently open, it only has 96 rooms under construction as it continues to absorb the rooms that have opened during the past two years."

Among the top 10 Markets by number of rooms in the In Construction phase, Orlando, Florida, reported the largest increase in rooms under construction with a 108-percent increase with 2,636 rooms. Three other markets experienced increases in rooms under construction of more than 30 percent: Miami-Hialeah, Florida (+44 percent with 1,026 rooms); Nashville, Tennessee (+40 percent with 446 rooms); and Philadelphia, Pennsylvania-New Jersey (+32 percent with 799 rooms). Houston, Texas, posted the largest decrease in rooms under construction, falling 75 percent with 680 rooms.

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