HENDERSONVILLE, Tennessee—The total active U.S. hotel development pipeline comprises 3,255 projects totaling 341,041 rooms, according to the October 2010 STR/TWR/Dodge Construction Pipeline Report released this week. This represents a 21.6-percent decrease in the number of rooms in the total active pipeline compared to October 2009. 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.
“Not surprisingly, the Upscale and Midscale without Food and Beverage segments should continue to expect double-digit increases in room supply if all active pipeline projects come to fruition,” said Lana Yoshii, VP of content management at STR. “The biggest difference between October 2010 and October 2009 pipeline activity is the volume of rooms that are in the active pipeline phases. The Midscale without Food and Beverage segment and the Upscale segment rooms under construction have dropped by 15,818 and 14,681 rooms, respectively. Lending institutions may be cautious to finance new hotel development, but the funding appears to be available.”
Among the Chain Scale segments, the Midscale without Food and Beverage segment reported the largest number of rooms in the total active pipeline with 109,555, a 14.0-percent decrease compared with October 2009. The Economy segment reported the largest decrease in rooms in the total active pipeline, falling 71.2 percent with 3,848 rooms, followed by the Luxury segment with a 49.9-percent decrease in rooms to 4,215 rooms.
U.S. pipeline by Chain Scale segment (number of rooms and percent change October 2010 vs. October 2009):
|
Chain Scale
|
Existing Supply
|
% Change
|
In Construction
|
% Change
|
Total Active Pipeline
|
% Change
|
|
Luxury
|
108,294
|
+2.2%
|
1,027
|
-77.4%
|
4,215
|
-49.9%
|
|
Upper Upscale
|
599,253
|
+1.0%
|
6,493
|
-44.7%
|
18,983
|
-24.5%
|
|
Upscale
|
524,828
|
+3.8%
|
13,335
|
-52.4%
|
79,426
|
-23.0%
|
|
Midscale w/ F&B
|
502,535
|
-1.7%
|
5,070
|
-29.1%
|
19,462
|
-18.3%
|
|
Midscale w/o F&B
|
839,245
|
+2.4%
|
20,672
|
-43.3%
|
109,555
|
-14.0%
|
|
Economy
|
759,042
|
-0.4%
|
1,264
|
-75.9%
|
3,848
|
-71.2%
|
|
Unaffiliated
|
1,535,931
|
+2.1%
|
8,271
|
-55.9%
|
105,552
|
-21.3%
|
|
|
|
|
|
|
|
|
|
Total
|
4,869,128
|
+1.4%
|
56,132
|
-49.8%
|
341,041
|
-21.6 %
|
* Includes those projects in the In Construction, Final Planning and Planning phases.
About STR/TWR/Dodge Construction Pipeline Report:
The Pipeline Report is co-produced by Torto Wheaton Research, Dodge Construction and the dedicated pipeline team at STR. Available as an annual subscription or a local Market Supply Report, the Pipeline Report is a comprehensive look at new hotel development and existing supply in the U.S. and Canada.
About STR
STR provides clients —including hotel operators, developers, financiers, analysts and suppliers to the hotel industry—access to hotel research with regular and custom reports covering North America, Mexico and Caribbean. STR provides a single source of global hotel data covering daily and monthly performance data, forecasts, annual profitability, pipeline and census information. STR founded the STR family of companies and is proudly associated with STR Global, RRC Associates, STR Analytics and HotelNewsNow.com. For more information, please visit www.str.com.
Media contacts:
Jeff Higley
VP, Digital Media & Communications
jeff@str.com
+1 (615) 824-8664 ext. 3318
Rachael Spann Urie
Communications Coordinator
rurie@str.com
+1 (615) 824-8664 ext. 3305
