U.S. hotel pipeline plummets 21% year over year

UNITED STATES The total active U.S. hotel development pipeline comprises 3,174 projects totaling 330,920 guestrooms, a 20.7% decline since November 2009, according to the latest STR/McGraw Hill Construction Dodge Pipeline Report.

The South Atlantic region reported the most guestrooms under construction, 12,449, but the Mid-Atlantic region is expecting the highest supply percentage growth, at 2.3%. Other stages of active pipeline development in the Mid-Atlantic continue to be robust, with a projected 12.9% increase in supply should all active pipeline projects come to fruition. The West South Central follows with a proposed 8.7% supply increase from active pipeline projects.

Among the nine U.S. geographical regions tracked by STR, New England reported the largest decrease in rooms in the total active pipeline in year-over-year comparisons, falling 63% to 5,818 guestrooms, followed by the Mountain region (down 36% with 27,710 guestrooms) and the Pacific region (down 29% with 38,662 guestrooms). The Mid-Atlantic region reported the smallest decrease in rooms in the total active pipeline, falling 7% to 55,872 guestrooms.

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