NATIONAL REPORT—For the third quarter of 2019, the U.S. hotel construction pipeline continued its year-over-year (YOY) growth spurt and ended Q3 with 5,704 projects/700,496 rooms, up 6% by projects and 8% by rooms YOY. Pipeline totals are just 179 projects shy of the all-time high of 5,883 projects/785,547 rooms reached in Q2 of 2008.
The majority of the projects in the pipeline fall within the starts in the next 12 months (SN12) project stage, which stands at 2,479 projects/286,125 rooms. Year-over-year this stage of the pipeline has increased 16% by projects and 13% by rooms. The SN12 stage accounts for 44% of the projects in the total U.S. pipeline. Currently, this is only 258 projects less than the high recorded for the stage in Q208.
The Southern region of the U.S. has the most projects scheduled to start in the next 12 months with 638 projects/67,631 rooms. This is led by Texas, which accounts for 56% of the projects in SN12 in this region, with a whopping 357 projects. Texas is also the state with the most SN12 projects in the entire U.S. pipeline. The Mountain Pacific region follows with 622 projects/75,985 rooms, of which California accounts for 49% of the projects in this region. The Southeastern region follows with 568 projects/72,659 rooms, led by Florida with 225 projects. The Midwest has 448 projects/46,404 rooms. Michigan has the most projects in SN12 in the Midwest with 95 projects. And, finally, the Northeast region of the U.S. has 203 projects/23,446 rooms scheduled to start in the next 12 months. This is led by New York state with 70 projects. New York accounts for 35% of the projects in SN12 in this region, followed by Pennsylvania with 50 projects. With the exception of the Northeast, in all regions of the U.S. at the end of Q3, the starts in the next 12 months stage was the largest of the pipeline.
The markets with the most projects in the SN12 stage in the U.S. are Dallas with 79 projects/9,824 rooms; Houston with 76 projects/6,872 rooms; Atlanta with 62 projects/8,367 rooms; Detroit with 56 projects/6,031 rooms; and Los Angeles with 51 projects/8,324. Of these markets, all but Los Angeles have the most projects in this stage of development. Other notable markets with more than 40 projects in SN12 include: Orlando, FL; Nashville, TN; Denver, Fort Worth, TX; Austin, TX; and Chicago.
For more information on the hotel construction pipeline in the U.S., or any other pipeline in any region, country or market in the world, contact LE (603) 431-8740 or [email protected].
—J.P. Ford, ISHC, SVP, director of global business development, Lodging Econometrics
—Bruce Ford, SVP, director of global business development, Lodging Econometrics
—Tom O’Gorman, VP, sales, Lodging Econometrics
—April Bedell, sales account executive , Lodging Econometrics