STR Reports October 2014 Hotel Pipeline for Asia Pacific, Central/South America and U.S.A.

According to the October 2014 STR Global Construction Pipeline Report, the Asia Pacific region reported 2,465 hotels comprising 548,005 rooms Under Contract -which includes projects in the in construction, final planning and planning stages, but does not include projects in the unconfirmed stage.

Among the markets in the region, Shanghai, China, reported the most rooms under construction with 6,969 rooms.

Four other markets reported more than 6,000 rooms under construction: Manila, Philippines (6,803 rooms); Jakarta, Indonesia (6,485 rooms); Chengdu, China (6,159 rooms); and Bali, Indonesia (6,097 rooms).

Central/South America

The Central/South America hotel development pipeline comprises 439 hotels totalling 70,970 rooms.

Among the Chain Scale segments, four segments each accounted for more than 15% of rooms Under Contract: the Upscale segment (20.6 % with 14,628 rooms); the Upper Midscale segment (20.6% with 14,620 rooms); the Midscale segment (20.4% with 14,487 rooms); and the Upper Upscale segment (18.5% with 13,118 rooms). The Unaffiliated segment accounted for the smallest portion of rooms Under Contract with 3.6% and 2,575 rooms.

Four segments each accounted for more than 15.0% of rooms In Construction: the Upscale segment (27.4% with 7,225 rooms); the Upper Midscale segment (19.6% with 5,165 rooms); the Midscale segment (18.6% with 4,911 rooms); and the Upper Upscale segment (17.6% with 4,635 rooms).

U.S.A.

According to STR's report, there are 3,358 hotels totaling 403,715 rooms Under Contract in the United States.

This represents a 15% increase in the number of rooms Under Contract compared with October 2013 and a 31.0% increase in rooms under construction.

“Upscale and Upper Midscale hotels continue to dominate U.S. development numbers, accounting for over two-thirds of rooms under construction,” said Bobby Bowers, senior VP of operations at STR, Inc. “Total U.S. under construction rooms increased by 31.0% versus October 2013, with all STR Chain Scale segments, except Luxury and Economy, showing solid increases. Upper Upscale construction activity increased by 3,198 rooms (+40.5%) and Midscale moved ahead by 1,938 rooms (+51.2%). STR expects U.S. room supply to continue inching forward and reach growth of over 1% in 2015.”

Among the Chain Scale segments, the Luxury segment reported the largest increase in rooms Under Contract, rising 22.6% with 9,127 rooms. The Upper Upscale segment (+21.3% with 30,117 rooms) and the Upper Midscale segment (+21.1% with 119,450 rooms) also reported increases of more than 20.0% in rooms Under Contract. The Economy segment reported the only decrease in rooms Under Contract, falling 10.1% with 4,105 rooms.

Three segments reported increases of more than 35.0% in rooms In Construction: the Midscale segment (+51.2% with 5,726 rooms); the Upper Upscale segment (+40.5% with 11,091 rooms); and the Upscale segment (+38.6% with 43,752 rooms). The Economy segment (-30.0% with 732 rooms) and the Luxury segment (-19.4% with 3,542 rooms) reported the only decreases in rooms In Construction.