The city of Los Angeles has more hotel projects in its construction pipeline than any other market in the U.S., according to Lodging Econometrics.
The city has a total of 168 projects/28,501 rooms in the construction pipeline.
Of that:
- Hotels currently under construction: 46 projects/7,064 rooms
- Projects scheduled to start construction in the next 12 months: 56 projects/9,199 rooms
- Projects in early planning: 66 projects/ 12,238 rooms
If all of the projects in the pipeline come to fruition, this will increase the city’s guest room supply by 27.1%.
Lodging Econometrics released the information to coincide with the Americas Lodging Investment Summit (ALIS), which begins today in Los Angeles.
Within the Los Angeles market, the three market tracts with the largest hotel construction pipelines are: Los Angeles Central Business District, with 47 projects/11,490 rooms; Los Angeles East, with 32 projects/4,418 rooms; and Los Angeles North, with 29 projects/3,037 rooms. These three important market tracts combined account for 67% of the rooms in Los Angeles’ total construction pipeline.
The market tracts with the most projects presently under construction are Los Angeles North, with 12 projects/1,153 rooms; Los Angeles Central Business District, with 10 projects/2,208 rooms; and Los Angeles East, with 8 projects/1,333 rooms.
LE’s forecast for new hotel openings predicts that in 2020, Los Angeles will have a growth rate of 2.5% with 19 new hotels/2,589 rooms opening. In 2021, Los Angeles is forecast to jump to a 4.4% growth rate with 33 new hotels/4,784 rooms expected to open.