There are 3,780 projects totaling 454,893 rooms Under Contract in the United States, according to the October 2015 STR Pipeline Report. This represents a 12.7% increase in the number of rooms Under Contract compared with October 2014 and a 21.9% 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 Economy segment reported the largest year-over-year increase in rooms Under Contract, rising 63.5% to 6,711 rooms. The Luxury segment followed with a 30.0% increase to 11,862 rooms.
“Economy and Luxury chains represent the smallest portions of the pipeline, but each reported significant growth in activity when compared with last October,” said Bobby Bowers, STR’s senior VP of operations.
The Unaffiliated segment (-14.1% to 89,972 rooms) reported the only decrease in the number of rooms Under Contract.
All segments with the exception of Midscale (+1.5% to 5,220 rooms) reported a double-digit increase in rooms under construction. Two of the segments reported an increase of more than 100.0%: Economy (+134.8% to 1,719 rooms) and Luxury (+107.6% to 7,353 rooms).
“Although they rank in the middle of the pack for year-over-year percentage changes, Upscale and Upper Midscale chains continue to rule overall construction, representing more than two-thirds of the U.S. total,” Bowers said. “It also is important to note that the Upper Upscale, Upscale and Upper Midscale segments each showed a roughly 80% or higher spike in rooms in Final Planning. More construction in those segments is on the way.”