U.S. hotel pipeline down 22% since year ago

UNITED STATES The total active U.S. hotel development pipeline comprises 3,362 projects totaling 352,356 guestrooms, according to the latest data from STR. This represents a 21.9% decrease in the number of guestrooms in the active pipeline compared to September 2009.

The active pipeline includes projects in construction and planning, but does not include projects considered to be in the pre-planning stage.

“September’s U.S. hotel development pipeline still reports continued growth in key markets, despite overall declines in rooms in various stages of development,” says Lana Yoshii, vice president of content management at STR.

New York City remains the U.S. market with the most guestrooms under construction, with an anticipated 7.4% growth rate in supply once those rooms open.

Orlando is the only U.S. market with more than 1,000 guestrooms under construction that reported an increase in the number of guestrooms in the construction phase—up 66% since September 2009 to 3,267 guestrooms. When those rooms open, supply is expected to increase by 2.7%.

Tight financing and barriers to entry in major markets remain a challenge for hotel developers, Yoshii says.

Two other markets reported increases in guestrooms under construction: Boston, which rose 2% to 1,246 guestrooms, and Denver, which is up 1% to 945 guestrooms. Las Vegas has experienced the largest decrease in hotel guestroom construction, falling 85% to 1,025, mostly due to the completion of the 4,004-key Aria Hotel & Casino late last year.