NATIONAL REPORT — The hotel construction
pipeline in the U.S. hit all-time highs in total projects and number of rooms
through the first quarter of 2024, according to the latest data from Lodging
Econometrics. And those numbers don’t appear to be slowing down anytime soon.
“Project announcements into the pipeline point to the potential of a supply growth surge in 2026 as the real estate cycle progresses,” said Bruce Ford, senior vice president and director of global business development for LE. “Most of that will be in the select-service and extended-stay property types.”
Through Q1
2024, the U.S. hotel construction pipeline sat at 6,065 projects and 702,990
rooms, which signifies a 9% increase year-over-year in projects and a 7%
increase YOY in rooms.
A total of
114 new hotels and 15,506 opened in the first quarter, and a record number of
projects are in the early planning stage, with a growing number of projects
scheduled to start in the next 12 months.
Analysts at
LE are also projecting modest growth in new hotel openings through the rest of
this year. Another 547 projects and 60,483 rooms are scheduled to open, which
would represent a 1.3% increase in new hotel supply by the end of 2024. That
growth is expected to continue in 2025, with LE analysts expecting 790 new
hotels and 86,561 rooms to open.
LE’s numbers
also point to growth across all the different stages of pipeline development,
with 1,144 projects (9% increase YOY) and 141,336 rooms (1% increase) under
construction, 2,259 projects (10% increase) with 260,968 rooms (8% increase)
scheduled to start construction in the next 12 months and 2,662 projects (9%
increase) and 300,686 rooms (9% increase) in the early planning stages, which
both represent all-time highs.
Unsurprisingly,
renovation and brand conversion numbers also hit all-time highs in the first
quarter, with 2,041 projects and 266,405 rooms. The subset of brand conversions
also hit an all-time high of 1,235 projects (a 14% increase year-over-year) and
114,680 rooms. Analysts at LE expect this type of development to continue to
thrive throughout the rest of the year.
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LODGING ECONOMETRIC REPORTS
In March, we
talked about the construction pipeline in Europe
In early
January, we talked about the construction pipeline in the U.S.
In late
January, we talked about the construction pipeline in Latin America