U.S. Hotel Construction Boom Hit a Record High in March Despite Coronavirus
Hotel builders shouldn’t get too optimistic by a record-setting month. It can take as long as a year for economic downturns to reflect in the construction industry.
If you're seeking indicators of how coronavirus is impacting the U.S. economy, you won't find it with hotel construction activity — yet.
"The number of rooms in construction will likely remain high, just as it did during the pre-recession peak," STR Senior Vice President of Lodging Insights Jan Freitag said. "Because of the coronavirus pandemic, the industry is no longer operating in a record-setting demand environment, so there isn't the same rush to open hotels and tap into that business."