There are 3,509 projects totaling 425,896 rooms Under Contract in the United States, according to the May 2015 STR Pipeline Report. This represents an 11.7-percent increase in the number of rooms Under Contract compared with May 2014 and a 23.8-percent 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.
“Upscale and Upper Midscale chains continue to dominate overall construction activity in the U.S., but Upper Upscale construction increased by 56.1 percent (versus May 2014) to more than 13,000 rooms,” said Bobby Bowers, STR’s senior VP of operations.
Among the Top 25 Markets, New York, New York, reported the most rooms Under Contract with 29,451 rooms. Two additional markets reported more than 10,000 rooms Under Contract for the month: Houston, Texas (17,612 rooms) and Dallas, Texas (11,412 rooms).
New York had the largest number of rooms under construction with 13,300 rooms, followed by Houston with 6,946 rooms.
Four other markets reported more than 3,000 rooms under construction: Las Vegas, Nevada (3,929 rooms); Miami/Hialeah, Florida (3,557 rooms); Los Angeles/Long Beach, California (3,515 rooms); and Chicago, Illinois (3,370 rooms).
“New York is far and away the leader in rooms under construction with about 10 percent of the U.S. total,” Bowers said. “Together, New York, Houston and Las Vegas account for roughly one-fifth of the U.S. construction activity.”