U.S. hotel pipeline down 8.2%, but growth continues in New York City

UNITED STATES The total active U.S. hotel development pipeline comprises 3,095 projects totaling 325,407 guestrooms, an 8.2% decrease from a year ago, according to the latest STR/McGraw Hill Construction Dodge Pipeline Report. This represents an

Developers continue to focus on key U.S. destination markets for growth. Of the top 10 largest hotel markets in the United States, New York City—the fifth largest market by number of guestrooms—leads the charge with the most guestrooms under construction, at 6,763. With this addition, the market’s supply will increase by almost 7%.

Orlando and Washington, D.C., each have approximately 2,600 guestrooms under construction, which will increase their inventories by more than 2%. Although Las Vegas has the most hotel rooms currently open, it only has 96 guestrooms under construction, as it continues to absorb the rooms that have opened during the past two years.

The total active pipeline data includes projects in the construction, final planning and planning stages, but does not include projects in pre-planning.

Among the top 10 markets, Orlando reports the largest increase in rooms under construction, up 108% from a year ago. Three other markets have experienced increases in guestrooms under construction of more than 30%: Miami (up 44% with 1,026 guestrooms); Nashville, Tennessee (up 40% with 446 guestrooms); and Philadelphia (up 32% with 799 guestrooms). Houston posted the largest decrease in guestrooms under construction, falling 75% to 680 guestrooms.