At America’s Lodging Investment Summit in Los Angeles, Lodging Econometrics released its Hotel Construction Pipeline Trend Report.
With a focus on the Los Angeles market, analysts at LE found that, at the end of 2021’s fourth quarter, Los Angeles has a total of 120 hotels and 19,815 rooms in the construction pipeline. As of Q4 2021, Los Angeles has the highest room count in the construction pipeline, slightly ahead of the Atlanta market, with 133 hotels and 17,593 rooms, and the New York, NY market with 121 hotels and 19,303 rooms.
In the Los Angeles market, there are 22 hotels and 3,630 rooms in the under construction stage. Projects scheduled to start construction in the next 12 months stand at 41 hotels and 6,278 rooms, and projects in early planning are at 57 hotels and 9,907 rooms.
At the end of the fourth quarter, the Los Angeles market ranked second of all new hotel openings for the quarter, with eight hotels and 1,323 guestrooms; behind the New York City market, which also opened eight new projects in Q4 2021 but has more rooms at 1,958.
LE’s forecast for new hotel openings anticipates that the Los Angeles market will rank fourth in the nation for new hotel openings in 2022 with 19 hotels and 3,081 rooms. In 2023, LE forecasts 11 hotel projects, accounting for 1,367 rooms, will open in the Los Angeles market.
