The number of available rooms in U.S. hotels surpassed 5 million for the first time, according to STR.
The company’s most recent hotel census, for June, shows 5,001,163 rooms across 53,554 properties. STR president and COO Amanda Hite said the growth “reflects continued interest in the sector and its ability to generate return.”
The industry hit 4.5 million rooms in February 2008. Eclipsing 5 million took 88 months at a growth rate of 5,600 rooms per month. That rate most closely matches the 84-month cycle from June 1987 to May 1994 when supply grew from 3 million available rooms to 3.5 million at a growth rate of 5,952 per month.
In its most recent lodging forecast, STR pegged U.S. supply growth at 1.2 percent for the remainder of 2015 and 1.4 percent for 2016. Both figures are below the 20-year compound annual growth rate of 1.7 percent, and STR forecasts that demand growth will outstrip supply growth through 2016. PKF Hospitality Research's March forecast similarly predicted supply would remain below historical levels until 2017.
Year-to-date as of June, the upscale chain segment had seen the most significant growth, 3.8 percent year over year, according to STR. Likewise, 66 percent of all U.S. hotel construction over the past two years has been in the limited-service upscale and upper-midscale segments.