STR’s July 2017 Pipeline Report shows 591,865 rooms in 4,899 hotel projects Under Contract in the United States. The total represents an 11.7% increase in the number of rooms Under Contract compared with July 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 188,734 rooms in 1,436 projects. Based on the number of rooms, that is a 10.2% increase in year-over-year comparisons and a 1.0% lift from the previous month.
“We continue to see a back-and-forth pattern with the total number of rooms in development from month to month,” said Bobby Bowers, STR’s senior VP for operations. “The trend that has been easier to identify is the much lower rate of year-over-year growth compared with this time last year. Even with that slowing, supply is still growing at a healthy pace, and that will continue to be the case even as financing has become tougher to obtain.”
Among the Top 26 Markets, New York, New York, reported the most rooms Under Contract (26,990 rooms) and most rooms In Construction (14,714 rooms).
Four additional markets each reported more than 15,000 rooms Under Contract for the month: Dallas, Texas (20,851 rooms); Houston, Texas (17,355 rooms); Los Angeles/Long Beach, California (15,107 rooms); and Orlando, Florida (15,053 rooms).
After New York, four other markets reported more than 5,000 rooms In Construction: Dallas (6,923 rooms); Houston (5,247 rooms); Nashville, Tennessee (5,164 rooms); and Los Angeles/Long Beach (5,029 rooms).
“A majority of the major markets have seen supply grow above the long-term U.S. average,” Bowers said. “That makes demand growth that much more important in mitigating occupancy and rate decreases.”
Three markets each reported fewer than 1,000 rooms In Construction: New Orleans, Louisiana (844 rooms); Norfolk/Virginia Beach, Virginia (303 rooms), and Oahu Island, Hawaii (180 rooms).
STR provides clients from multiple market sectors with premium, global data benchmarking, analytics and marketplace insights. Founded in 1985, STR maintains a presence in 16 countries with a corporate North American headquarters in Hendersonville, Tennessee, and an international headquarters in London, England. For more information, please visit str.com.