At the close of 2020’s second quarter, Lodging Econometrics (LE) reports that the current U.S. hotel construction pipeline totals 5,582 projects and 687,801 guestrooms, which demonstrates a mere 1-percent decrease in projects and guestrooms year-over-year (YOY). With interest rates at record lows, the pipeline remains robust despite the ongoing COVID-19 coronavirus pandemic.
The latest LE report reveals that projects and guestrooms under construction reflect a YOY increase of 3 and 1 percent, respectively, while 2,389 projects and 276,247 guestrooms are slated to begin construction in the next 12 months. A total of 1,422 projects and 176,087 guestrooms are currently in the early planning stages, too.
The first half of 2020 recorded the opening of 313 new hotels and 36,992 guestrooms. An additional 481 projects and 56,823 guestrooms were announced and added to the pipeline during the same timeframe, with 169 projects and 20,359 guestrooms announced in the second quarter alone.
New development deals have since slowed and registered a 53-percent YOY decrease in new announcements. However, an uptick in domestic leisure travel has emerged as hotel brands begin to renovate or reposition their properties to prioritize the needs and safety of travelers. During the first half of the year, LE reported 1,465 active renovation projects and 1,196 active conversion projects in the United States that comprised 314,043 and 136,110 guestrooms, respectively.
