The first quarter of 2021 has closed with a total of 4,967 projects and 622,218 guestrooms in the U.S. hotel construction pipeline, according to Lodging Econometrics (LE). A slight dip year-over-year (YOY), the pipeline shows no sign of worrisome decline comparable to readings in 2008 or 2009.
The first quarter also wrapped with 1,311 projects and 179,304 guestrooms under construction and 229 hotels and 27,528 guestrooms that had newly opened. LE forecasts that 691 projects and 81,886 guestrooms will open by the end of 2021, representing a 2.0 percent increase in new hotel supply YOY. A 2.0 percent increase is also anticipated in 2022, with 963 projects and 111,235 guestrooms forecasted to open.
Although there was a minor decline in projects and guestrooms—1,198 and 190,475, respectively—under renovation during the first quarter, projects and guestrooms in early planning rose 10 and 14 percent YOY, respectively, clocking in with 1,790 projects and 227,003 guestrooms. Of the 1,866 projects scheduled to begin construction in the next 12 months, 26.8 percent belong to extended-stay brands, a segment of the industry that continues to gain momentum.
New York continues to hold the lead among U.S. markets with 145 projects and 24,762 guestrooms in the pipeline. Los Angeles narrowly occupies second place with 144 projects and 23,994 guestrooms. And Dallas, Atlanta, and Orlando round out the top five markets.
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