New hotel construction virtually nonexistent in New England

UNITED STATES The U.S. hotel development pipeline is off 11.1% from a year ago, and the New England region in particular is seeing almost no new construction.

The total active U.S. hotel development pipeline comprises 3,118 projects totaling 327,693 guestrooms, according to the February STR/McGraw Hill Construction Dodge Pipeline Report. The total active pipeline data includes projects in the construction, final planning and planning stages, but does not include projects in the Pre-Planning stage.

Among the U.S. regions, New England has experienced the largest decrease in rooms in the total active pipeline, falling 35.1% with 9.281 rooms. Moreover, the region has America’s fewest guestrooms under construction—just 885.

The U.S. Mountain region is off 20.1%, with 26,136 guestrooms in the pipeline. The U.S. Pacific region pipeline is also down significantly, dropping 16.1% year over year to 39,691 guestrooms. The U.S. Middle Atlantic was the only region to see a pipeline increase since last February, rising 2.5% to 58,980 guestrooms.

The U.S. South Atlantic region has 23% of the country’s total hotel inventory. Not surprisingly, that region also has the highest percentage of rooms under construction in the United States, at 23%, followed by the Middle Atlantic (21%) and the West South Central (19%), according to STR.