3,422 Hotels in US Under Contract in November 2014 Pipeline

According to the November 2014 STR Pipeline Report, there are 3,422 hotels totaling 413,419 rooms Under Contract in the United States.

This represents a 17.3% increase in the number of rooms Under Contract compared with November 2013 and a 28.0% increase in rooms under construction.

The Under Contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Unconfirmed stage.

“Upscale and Upper Midscale hotels once again dominated U.S. hotel development numbers, accounting for more than two-thirds of industry rooms under construction in November,” said Bobby Bowers, senior VP of operations at STR, Inc. “All STR Chain Scale segments except Luxury (down 22.6%) and Economy (down 51.4%) recorded double-digit increases in room construction activity versus November 2013. Upper Upscale under construction rooms increased by almost 46% versus prior year, and now account for more than 10% of U.S. hotel room construction.”

Among the Chain Scale segments, the Upper Upscale segment reported the largest year-on-year increase in rooms Under Contract, rising 34.6% to 31,259 rooms. Three other segments each reported growth of more than 20.0%: the Luxury segment (+30.6% to 9,722 rooms); the Upper Midscale segment (+21.9% to 123,248 rooms); and the Upscale segment (+21.5% to 113,282 rooms). The Economy segment was the only segment to report a decrease in rooms Under Contract, falling 15.1% to 4,063 rooms.

Three segments achieved year-on-year increases of more than 30.0% in rooms In Construction: the Upper Upscale segment (+45.9% with 12,342 rooms); the Upscale segment (+41.6% with 44,748); and the Midscale segment (+33.9% with 5,653 rooms). The Economy segment (-51.4% with 655 rooms) and the Luxury segment (-22.6% with 3,542 rooms) reported the largest decreases in rooms In Construction.