STR’s June 2016 Pipeline Report shows 522,324 rooms in 4,241 projects Under Contract in the United States. The total represents a 22.6% increase in the number of rooms Under Contract compared with June 2015.
Under Contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Unconfirmed stage.
In the In Construction stage, the U.S. reported 166,397 rooms in 1,255 projects, a 29.3% increase in year-over-year comparisons.
Among the Chain Scale segments, Upscale (57,371 rooms in 413 hotels) accounted for the most rooms In Construction followed by Upper Midscale (52,245 rooms in 517 hotels).
“Roughly two-thirds of all hotel room construction in the country falls under the select-service umbrella,” said Bobby Bowers, STR’s senior VP for operations. “It’s also no surprise that the Upper Midscale and Upscale segments show the largest numbers for the two planning phases. Select-service projects remain the most popular, and we don’t see that changing anytime soon. And with supply continuing to increase, the focus will be on whether demand can keep pace and how prices are ultimately affected.”
The Midscale segment (+62.2% to 6,613 rooms) reported the largest year-over-year percentage increase in rooms In Construction.
Economy reported the largest percentage increase for rooms Under Contract (+37.1% to 4,290 rooms) despite having the smallest overall number of rooms in the pipeline.
“All of the segments showed pretty significant year-over-year increases in construction activity, but construction figures were actually down in four of the segments when compared with May,” Bowers said.
U.S. pipeline by Chain Scale segment (number of rooms % change June 2016 versus June 2015):
|Chain Scale||Existing Supply||% Change||In Construction||% Change||Under Contract||% Change|
Source: STR / report as of June 2016, activity reported through May 2016