The total number of projects in the U.S. hotel development pipeline at the end of the first quarter was up 9 percent year over year to 5,545, according to a new Lodging Econometrics report. Marriott International again led with the largest pipeline in Q1, while Dallas held the top spot with record-high project counts among U.S. markets, according to the report.
While the total U.S. hotel pipeline increased for the fourth consecutive quarter, first-quarter pipeline growth was not as strong as the 14 percent growth in the fourth quarter.
Like project growth, guest rooms in the first-quarter pipeline increased 9 percent year over year with more than 658,000 rooms in development, according to Lodging Econometrics.
In Q1, all stages of U.S. hotel construction increased year over year. According to the report, there are 1,051 projects and more than 140,000 rooms currently under construction, each up 9 percent year over year. Hotel projects scheduled to start construction in the U.S. in the next 12 months are up 8 percent at 2,060 projects and more than 241,000 rooms. Projects in the early planning stage are at an all-time high of 2,434 with more than 276,000 rooms. These projects are up 10 percent and make up 44 percent of the projects in the total Q1 U.S. construction pipeline.
According to Lodging Econometrics, the pipeline growth in the U.S. can be attributed to “robust” recovery of travel demand.
“Increased consumer confidence and spending activity has fueled strong occupancy and rate growth throughout the last 12 months as well,” according to Lodging Econometrics. “Developers are motivated to sign new projects anticipating more favorable financing conditions in the coming quarters. Owners are eager to wrap up existing brand conversion and renovation projects, which have been a substantial focus for many quarters now.”
Dallas and Marriott Lead, Again
Marriott again took top spot as the hotel company with the greatest number of projects in the Q1 U.S. hotel construction pipeline, with 1,499 and more than 181,000 rooms. Hilton Worldwide followed with a record-high count for the company of 1,436 projects and more than 161,000 rooms. In Q1, InterContinental Hotels Group reported 809 projects and more than 80,000 rooms in the U.S. pipeline. Together, Marriott, Hilton and IHG make up 68 percent of the projects in the U.S. pipeline, according to Lodging Econometrics.
Home2 Suites by Hilton again was the individual brand with the largest pipeline of 546 projects and 56,000 rooms. Marriott’s TownePlace Suites reported 333 projects and more than 31,000 rooms, and IHG’s Holliday Inn Express brand followed with 301 projects and more than 28,000 rooms.
U.S. hotel construction has grown across Lodging Econometrics’ top 25 markets, with Dallas again leading with record-high counts at 184 projects and more than 21,000 rooms. Atlanta followed with 144 projects and more than 18,000 rooms, with Los Angeles next at 118 projects and more than 19,000 rooms. Phoenix reported 117 projects and more than 16,000 rooms, and Nashville had 115 projects and more than 15,000 rooms in Q1.
[email protected] (Angelique Platas)
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