A new report from Lodging Econometrics (LE) confirms that the expansion of the U.S. construction pipeline continued to grow during the first quarter of 2019. A total of 5,647 projects and 687,941 guestrooms demonstrates increases of seven and eight percent, respectively, year-over-year (YOY). Pipeline totals fall 236 projects (four percent) short of the all-time high of the pipeline reading of 5,883 projects and 785,547 guestrooms in the second quarter of 2008.
The report also indicates a total of 1,709 projects in the pipeline as well as 227,924 guestrooms, while 2,429 projects and 281,395 guestrooms are scheduled to begin construction in the next 12 months. Moreover, the pipeline includes 1,509 projects and 178,622 guestrooms in early planning. Upscale and upper midscale chains currently occupy 66 percent of projects in the pipeline. For 2019, LE forecasts a supply growth rate of 2.2 percent with 1,038 new hotels and 118,385 guestrooms expected to open. LE anticipates 1,174 new hotel openings and 128,598 guestroom openings in 2020.
Occupancy increases were only recorded among seven percent of the top 25 markets, quarter-over-quarter (QOQ), while only 11 markets reported rev-par increases. U.S. demand growth was up 2.4 percent and supply increased two percent as well.
