A total of 372 new U.S. hotel projects with 45,084 rooms were announced in the first half of 2021, with 202 of those 25,653 rooms announced in the second quarter, a 20 percent year-over-year increase in announcements for the second quarter of the U.S. construction pipeline report by Lodging Economics.
For the first half of 2021, 472 new hotels with 59,034 rooms were opened in the U.S., and Lodging Econometrics predicts the opening of another 450 projects with 51,754 rooms in the second half of 2021, a 2 percent increase in new supply for 2022 in its initial forecast For 2023, the company expects a further increase in supply of 2 percent and a further 997 projects with 115,271 rooms.
There are currently 1,165 projects with 159,581 rooms under construction, and projects expected to begin within the next 12 months include 1,843 projects with 213,744 rooms, according to Lodging Econometrics. 1,779 projects with 224,786 rooms are in the early planning phase. The increase in projects in the early stages, according to the company, reflects a combination of the developers’ confidence in initiating new construction projects and the recalibration of the schedules for some existing projects.
The renovations are still strong, with 1,181 active renovation projects with 128,810 rooms in the first half of 2021. A total of 1,152 projects with 238,110 rooms were renovated in the same period.
Top markets by pipeline
New York City took the top spots in the US market with the largest construction pipeline at the end of the second quarter (146 projects with 25,232 rooms), the most projects under construction (111 with 19,582 rooms), the highest number of hotels forecast by opening 2021 ( 59 projects with 8,583 rooms) for a 7.2 percent increase in supply and the highest number of hotels expected to open in 2022 (46 projects with 7,934 rooms).
After New York, Los Angeles (135 projects with 22,586 rooms), Dallas (132 projects with 16,183 rooms), Atlanta (129 projects with 17,845 rooms) and Nashville (91 projects) were the four cities with the largest hotel construction pipelines in the US with 12,703 rooms ).
Cities with the highest number of projects under construction after New York were Atlanta, Los Angeles, Dallas, and Austin, Texas. Taken together, these five markets account for nearly 25 percent of the total number of rooms currently under construction in the United States, according to Lodging Econometrics.
RELATED: Marriott, Hilton, IHG account for 73 percent of US hotel rooms that opened in the first quarter
[ad_1]
