549,142 Hotel Rooms in 4,510 Projects Under Contract in U.S.A.

According to STR’s September 2016 Pipeline Report there are 549,142 hotel rooms in 4,510 projects Under Contract in the United States.

The total represents a 24.4% increase in the number of rooms Under Contract compared with September 2015.

In the In Construction stage, the U.S. reported 178,279 rooms in 1,352 projects, a 34.8% increase in year-on-year comparisons.

“U.S. supply continues to grow at a rapid pace, and we expect that growth to persist for the coming years,” said Bobby Bowers, STR’s senior VP for operations. “Even though the industry is selling rooms at a record level, new supply is a key factor in the country’s softening occupancy.”

A large percentage of U.S. hotel construction activity, 47.6%, continues in the Top 26 Markets by existing supply.

Among those markets, New York, New York, reported the most rooms Under Contract (30,405 rooms) and most rooms In Construction (16,462 rooms).

Two additional markets each reported more than 15,000 rooms Under Contract for the month: Houston, Texas (18,029 rooms), and Dallas, Texas (16,444 rooms).

Three markets in addition to New York each reported more than 5,000 rooms In Construction: Los Angeles/Long Beach, California (5,921 rooms), Dallas (5,567 rooms) and Houston (5,305 rooms).

“New York’s construction total represents roughly 9% of all U.S. hotel construction activity and 14.5% of that market’s existing supply,” Bowers said. “If you add up the construction totals of those next three markets (16,793 rooms), you barely surpass New York.”

Three markets each reported fewer than 1,000 rooms In Construction: St. Louis, Missouri-Illinois (864 rooms); Norfolk/Virginia Beach, Virginia (456 rooms); and Oahu Island, Hawaii (410 rooms).

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

STR, Pipeline, ADR, RevPAR, New York