STR reports US hotel pipeline for September 2010

The total active U.S. hotel development pipeline comprises 3,362 projects totaling 352,356 rooms, according to the September 2010 STR/TWR/Dodge Construction Pipeline Report released this week. This represents a 21.9-percent decrease in the number of rooms in the total active pipeline compared to September 2009. The total active pipeline data includes projects in the In Construction, Final Planning and Planning stages, but does not include projects in the Pre-Planning stage.

“September’s U.S. hotel development pipeline still reports continued growth in key markets, despite overall declines in rooms in various stages of development,” said Lana Yoshii, VP of content management at STR. “New York City remains the top market with the most rooms under construction, with an anticipated 7.4-percent growth rate in supply once those rooms open. Not surprisingly, Orlando is the only major market with more than 1,000 rooms under construction that reported In Construction rooms increased (66 percent) compared to September 2009. When those rooms open, supply is expected to increase by 2.7 percent. Tight financing and barriers to entry in major markets remain a challenge for hotel developers.”

Among the Top 10 Markets by rooms in the In Construction phase, Orlando, Florida, reported the largest increase, rising 66.0 percent to 3,267 rooms in the In Construction phase. Two other markets reported increases in rooms in the In Construction phase: Boston, Massachusetts (+2 percent to 1,246 rooms) and Denver, Colorado (+1 percent to 945 rooms). Las Vegas, Nevada, experienced the largest decrease in rooms in the In Construction phase, falling 85 percent to 1,025 rooms.

About STR/TWR/Dodge Construction Pipeline Report: The Pipeline Report is co-produced by Torto Wheaton Research, Dodge Construction and the dedicated pipeline team at STR. Available as an annual subscription or a local Market Supply Report, the Pipeline Report is a comprehensive look at new hotel development and existing supply in the U.S. and Canada.