Jump in number of U.S. hotels under construction signals new supply coming

The number of hotel rooms under construction in the U.S. increased 31 percent in January, compared to a year ago, according to STR's January pipeline report.

The hotel development pipeline includes 2,966 projects with 361,299 rooms, World Property Channel writes.

The number of rooms in the total active pipeline—construction, final planning and planning stages—increased 17.6 percent from January 2013.

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"Upscale and upper-midscale segments continue to dominate all phases of the active U.S. development pipeline," said Bobby Bowers, SVP of operations at STR. "With nearly 64,000 rooms currently under construction, the two segments combined accounted for more than two of every three U.S. hotel rooms currently under construction."

The upper-upscale segment ranked third with almost 8,000 rooms under construction, an increase of more than 12 percent compared to the prior year.

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