NATIONAL REPORT - There are 6,095 projects with 713,151 rooms in the U.S.
pipeline, representing an all-time high and a 9% year-over-year (YOY) increase
in projects and an 8% YOY increase in rooms compared to Q2 2023 totals,
according to Lodging Econometrics.
The LE forecast for the remainder of 2024 includes the
opening of another 400 projects with 44,451 rooms, totaling 650 new hotels with
74,228 rooms by year-end. The year-end 2024 forecast represents a 35% increase
over the total number of hotel openings in 2023, which stood at 480
hotels/60,922 rooms. Looking ahead to 2025, LE analysts anticipate an
additional 779 new hotels/87,405 rooms to open. For 2026, LE estimates 928
projects/101,796 rooms to open in the U.S. equating to a 1.8% new supply
increase.
At the close of the second quarter, there are 1,171 projects
comprising 147,611 rooms under construction, marking a 10% increase in projects
and a 4% increase in rooms YOY. Projects slated to start construction in the
next 12 months total 2,350 projects with 268,378 rooms, reflecting a 5%
increase in projects and a 3% increase in rooms YOY.
Projects and room counts in the early planning stage
increased by 13% and 15% YOY, respectively, ending the quarter at 2,574
projects and 297,162 rooms.
Extended-stay brands continue to remain popular with developers, accounting for
36% of the projects under construction, 33% of projects scheduled to begin
within the next 12 months, and 34% of projects in the early planning stage.
Fully, 64% of the projects in the extended-stay pipeline are in the middle
tier.
LE analysts report that the upper midscale chain scale stands at 2,262
projects/219,547 rooms and has the largest project count of all chain scales in
the total construction pipeline at the close of Q2. The second largest is the
upscale chain scale, which has 1,417 projects/175,343 rooms. Together, the
upscale and upper midscale chain scales comprise 60% of all projects in the
total pipeline.
Some 250 new hotels with 29,777 rooms opened in the U.S. during the first and
second quarters of 2024 with more than half in the upscale and upper midscale
at 154 projects/19,797 rooms and 237 projects/23,160 rooms, respectively. These
two chain scales are forecasted to have the highest growth rates, through 2026.
The upscale chain scale is forecasted to grow its current supply by 2.2% and
upper midscale by 2.0% in 2024; both chain scales are expected to grow by 2.3%
in 2025; and in 2026, the chain scales should have 3.0% and 2.6% growth,
respectively.
In Q1 and Q2 of 2024, 90 new extended-stay hotels/9,134 rooms opened in the
U.S. At year-end 2024, 223 extended-stay hotels/22,933 rooms are expected to
open. In 2025, 304 new extended-stay hotels/31,225 rooms are expected to open,
and in 2026, LE forecasts 363 new extended-stay hotels/38,165 rooms to open.