LONDON - STR’s July 2017 Pipeline Report shows 178,105 rooms in 1,167 hotel projects Under Contract in Europe. The total represents a 20.0% increase in rooms Under Contract compared with July 2016.
Under Contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Unconfirmed stage.
Europe reported 77,280 rooms in 499 projects In Construction for the month. Based on number of rooms, that is a 22.0% increase in year-over-year comparisons.
Five key European markets reported more than 2,000 rooms In Construction:
- Istanbul, Turkey (4,497 rooms in 24 projects)
- London, England (4,300 rooms in 27 projects)
- Moscow, Russia (3,602 rooms in 16 projects)
- Munich, Germany (2,897 rooms in 13 projects)
- Amsterdam, The Netherlands (2,166 rooms in 12 projects)
Middle East and Africa hotel pipeline
STR’s July 2017 Pipeline Report shows 166,166 rooms in 590 hotel projects Under Contract in the Middle East and 56,925 rooms in 308 projects Under Contract in Africa.
STR’s July 2017 Pipeline Report shows 166,166 rooms in 590 hotel projects Under Contract in the Middle East and 56,925 rooms in 308 projects Under Contract in Africa.
Under Contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Unconfirmed stage.
The Under Contract total in the Middle East represents a 6.6% increase in rooms Under Contract compared with July 2016. Specifically in the In Construction phase, the Middle East reported 95,089 rooms in 301 projects. Based on number of rooms, that is a 14.3% increase in year-over-year comparisons.
The Under Contract total in Africa represents a 1.2% increase in rooms Under Contract compared with July 2016. In the In Construction phase, Africa reported 28,500 rooms in 163 projects. Based on number of rooms, that is a 4.8% decrease in year-over-year comparisons.
Four key markets in the Middle East and Africa region reported more than 5,000 rooms In Construction:
- Dubai, United Arab Emirates (24,832 rooms in 85 projects)
- Makkah, Saudi Arabia (23,816 rooms in 18 projects)
- Doha, Qatar (8,714 rooms in 36 projects)
- Riyadh, Saudi Arabia (6,712 rooms in 30 projects)
US hotel pipeline
STR's July 2017 Pipeline Report shows 591,865 rooms in 4,899 hotel projects Under Contract in the United States. The total represents an 11.7% increase in the number of rooms Under Contract compared with July 2016.
STR's July 2017 Pipeline Report shows 591,865 rooms in 4,899 hotel projects Under Contract in the United States. The total represents an 11.7% increase in the number of rooms Under Contract compared with July 2016.
Under Contract data includes projects in the In Construction, Final Planning and Planning stages, but does not include projects in the Unconfirmed stage.
In the In Construction stage, the U.S. reported 188,734 rooms in 1,436 projects. Based on the number of rooms, that is a 10.2% increase in year-over-year comparisons and a 1.0% lift from the previous month.
“We continue to see a back-and-forth pattern with the total number of rooms in development from month to month,” said Bobby Bowers, STR’s senior VP for operations. “The trend that has been easier to identify is the much lower rate of year-over-year growth compared with this time last year. Even with that slowing, supply is still growing at a healthy pace, and that will continue to be the case even as financing has become tougher to obtain.”
Among the Top 26 Markets, New York, New York, reported the most rooms Under Contract (26,990 rooms) and most rooms In Construction (14,714 rooms).
Four additional markets each reported more than 15,000 rooms Under Contract for the month: Dallas, Texas (20,851 rooms); Houston, Texas (17,355 rooms); Los Angeles/Long Beach, California (15,107 rooms); and Orlando, Florida (15,053 rooms).
After New York, four other markets reported more than 5,000 rooms In Construction: Dallas (6,923 rooms); Houston (5,247 rooms); Nashville, Tennessee (5,164 rooms); and Los Angeles/Long Beach (5,029 rooms).
“A majority of the major markets have seen supply grow above the long-term U.S. average,” Bowers said. “That makes demand growth that much more important in mitigating occupancy and rate decreases.”
Three markets each reported fewer than 1,000 rooms In Construction: New Orleans, Louisiana (844 rooms); Norfolk/Virginia Beach, Virginia (303 rooms), and Oahu Island, Hawaii (180 rooms).
U.S. Markets (ranked by In Construction phase)
| Market | In Construction July 2016 | In Construction July 2017 | In Construction YOY % change |
| New York, NY | 15,770 | 14,714 | -6.7% |
| Dallas, TX | 5,562 | 6,923 | +24.5% |
| Houston, TX | 5,381 | 5,247 | -2.5% |
| Nashville, TN | 2,822 | 5,164 | +83.0% |
| Los Angeles/Long Beach, CA | 5,633 | 5,029 | -10.7% |
| Denver, CO | 4,451 | 4,951 | +11.2% |
| Seattle, WA | 3,358 | 4,462 | +32.9% |
| Las Vegas, NV | 3,832 | 4,384 | +14.4% |
| Washington, DC-MD-VA | 3,612 | 4,182 | +15.8% |
| Chicago, IL | 4,287 | 4,070 | -5.1% |
Source: STR / report as of July 2017, activity reported through June 2017
