There are 3,803 projects totaling 457,606 rooms Under Contract in the United States, according to the November 2015 STR Pipeline Report. This represents a 10.7% increase in the number of rooms Under Contract compared with November 2014 and a 20.6% 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.
“Almost 49% of November construction activity resided in the Top 26 Markets, and 20 of those markets experienced construction growth when compared with November 2014,” said Bobby Bowers, STR’s senior VP of operations.
New York, New York, reported the most rooms Under Contract with 31,482 rooms. Four additional markets each reported more than 10,000 rooms Under Contract for the month: Houston, Texas (17,764 rooms); Dallas, Texas (13,729 rooms); Miami/Hialeah, Florida (11,763 rooms); and Washington, D.C.-Maryland-Virginia (10,788 rooms).
New York also had the largest number of rooms under construction with 13,583 rooms. Houston followed with 6,169 rooms In Construction.
“The New York market accounted for just about 10% of total U.S. construction activity and reported more than twice as many rooms In Construction as the next closest market,” Bowers said. “Houston’s pipeline represents roughly 8% of that market’s existing supply base. The pending new supply combined with reduced demand influenced by low oil prices will likely extend the near-term headwinds in Houston.”
Five other markets each reported more than 3,000 rooms under construction: Dallas (4,361 rooms); Los Angeles/Long Beach, California (4,240 rooms); Washington, D.C. (3,949 rooms); Las Vegas, Nevada (3,905 rooms); and Miami/Hialeah (3,430 rooms).
Three markets each reported less than 500 rooms under construction: St. Louis, Missouri-Illinois (407 rooms); Norfolk/Virginia Beach, Virginia (300 rooms); and Oahu Island, Hawaii (175 rooms).
Bowers also noted that San Francisco/San Mateo, California, ranks 22nd among the Top 26 Markets in rooms In Construction.
“The lack of meaningful new supply growth should help extend the San Francisco’s stellar performance streak,” Bowers said.