STR: U.S. pipeline up 10% in April year-over-year

Growth
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From April 2018 to April 2019, the number of hotel rooms under construction rose 9.9 percent to 203,890, according to data from STR. April marked the seventh straight month of year-over-year growth, with its 9.9 percent rise the highest since August 2017.

“There has been ongoing acceleration in construction activity, and even though the national total is still more than 7,000 rooms below the previous construction peak in 2007, this is a situation worth watching,” Jan Freitag, STR’s senior VP of lodging insights, said in a statement. “The level of supply growth focused in the limited-service segments and in the major markets is applying more pressure on occupancy levels and room rates. Those operating in those segments or markets are seeing even greater challenges in maintaining their profitability.”

Construction activity continues to be focused in the upper-midscale and upscale segments, while upper-upscale projects experienced the largest year-over-year increase in activity.

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  1. Upper-midscale: 67,495 rooms, up 4.5 percent
  2. Upscale: 61,347 rooms, up 4.9 percent
  3. Upper-upscale: 24,543 rooms, up 12.2 percent

According to STR, five markets had more than 6,000 rooms under construction:

  1. New York: 13,976 rooms
  2. Las Vegas: 8,435 rooms
  3. Orlando: 7,310 rooms
  4. Dallas: 6,438 rooms 
  5. Los Angeles/Long Beach: 6,113 rooms

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