There are 3,671 projects totaling 439,844 rooms Under Contract in the United States, according to the August 2015 STR Pipeline Report. This represents a 12.4% increase in the number of rooms Under Contract compared with August 2014 and a 21.6% year-over-year increase in rooms under construction. The Under Contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Unconfirmed stage.
Among the Chain Scale segments, the Luxury segment reported the largest year-over-year increase in rooms Under Contract, rising 55.9% to 11,434 rooms. The Economy segment followed with a 40.2% increase to 6,624 rooms.
The Unaffiliated segment (-15.8% to 88,672 rooms) reported the only decrease in the number of rooms Under Contract.
All segments reported a double-digit increase in rooms under construction with the exception of Upper Upscale (+5.1% to 11,537 rooms) and Midscale (-0.3% to 4,438 rooms). Three of the segments reported an increase of more than 30.0%, led by the Luxury segment (+63.5% to 5,927 rooms).
“With the 63.5% year-over-year increase, Luxury chains now account for 4.5% of total U.S. hotel room construction compared to just over 3.0% last August,” said Bobby Bowers, STR’s senior VP for operations. “And while the year-over-year percentage changes were not as great, Upscale and Upper Midscale chains continue to dominate room construction with more than two-thirds of the U.S. total. Upper Midscale and Upscale rooms in the Final Planning stage also increased by roughly 70.0% and 76.0%, respectively, providing further evidence that those two segments will continue their dominance of U.S. development activity.”