The total number of U.S. hotel construction projects in the development pipeline at the end of the first quarter was 2 percent higher than a year earlier, but the number of hotel rooms in the pipeline fell 3 percent, according to a new report from Lodging Econometrics.
In total, the first quarter U.S. hotel construction pipeline stood at 5,090 projects, representing approximately 606,300 rooms. Currently about 960 projects representing about 128,800 rooms were under construction, down 27 per cent and 28 per cent per annum, respectively. On the contrary, about
Meanwhile, 2,218 projects and 254,500 rooms were in the initial planning stage and the initial planning stage was 24 percent and 12 percent higher than the first quarter record and year, respectively.
According to Lodging Econometrics, “new projects and development plans that were previously stuck are now getting the green light from investors and developers with strong confidence for a rather strong domestic leisure trip in the first half of the year.” “With strong domestic leisure travel in the United States, and a slow revival of corporate and group travel, there is growing confidence in recovery.”
According to Lodging Econometrics, about 63 percent of the total hotel construction pipeline in the United States is concentrated in the upper and upper-middle scale levels, which is a common part. However, the renovation or conversion pipeline represents a total of 1,420 projects with 184,700 rooms, the highest ever and 59 percent and 48 percent higher than in the first quarter of 2021, respectively.
In the first quarter, Marriott International had more U.S. projects in the pipeline than any other hotel company, with 1,359 projects representing approximately 171,800 rooms. It follows Hilton Worldwide, with 1,287 projects and approximately 146,600 rooms and IHG Hotels & Resorts, 785 projects and approximately 79,000 rooms. Together, these three companies are responsible for 67 percent of all U.S. construction pipeline projects and 66 percent of rooms.
Dallas led the U.S. market in the first quarter with 165 projects and 19,700 rooms in the pipeline, followed by Atlanta with 135 projects and 17,600 rooms, Los Angeles with 123 projects and about 20,200 rooms, and New York with 122 projects and about 20,800 rooms.