STR Reports US, Caribbean/Mexico, Central/South America Hotel Pipeline for October

There are 3,358 hotels totaling 403,715 rooms Under Contract in the United States, according to the October 2014 STR Pipeline Report. This represents a 15.0-percent increase in the number of rooms Under Contract compared with October 2013 and a 31.0-percent increase in rooms under construction. The Under Contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the unconfirmed stage.

“Upscale and Upper Midscale hotels continue to dominate U.S. development numbers, accounting for over two-thirds of rooms under construction,” said Bobby Bowers, senior VP of operations at STR, Inc. “Total U.S. under construction rooms increased by 31.0 percent versus October 2013, with all STR Chain Scale segments, except Luxury and Economy, showing solid increases.  Upper Upscale construction activity increased by 3,198 rooms (+40.5 percent) and Midscale moved ahead by 1,938 rooms (+51.2 percent).  STR expects U.S. room supply to continue inching forward and reach growth of over 1 percent in 2015.”

Among the Chain Scale segments, the Luxury segment reported the largest increase in rooms Under Contract, rising 22.6 percent with 9,127 rooms. The Upper Upscale segment (+21.3 percent with 30,117 rooms) and the Upper Midscale segment (+21.1 percent with 119,450 rooms) also reported increases of more than 20.0 percent in rooms Under Contract. The Economy segment reported the only decrease in rooms Under Contract, falling 10.1 percent with 4,105 rooms.

Three segments reported increases of more than 35.0 percent in rooms In Construction: the Midscale segment (+51.2 percent with 5,726 rooms); the Upper Upscale segment (+40.5 percent with 11,091 rooms); and the Upscale segment (+38.6 percent with 43,752 rooms). The Economy segment (-30.0 percent with 732 rooms) and the Luxury segment (-19.4 percent with 3,542 rooms) reported the only decreases in rooms In Construction.

The Caribbean/Mexico hotel development pipeline comprises 167 hotels totaling 29,430 rooms. This represents an 18.3-percent increase in rooms Under Contract compared with October 2013 and an 18.2-percent increase in rooms In Construction. The total rooms Under Contract include rooms in the In Construction, Final Planning and Planning stages but do not include rooms in the unconfirmed stage.

Among the countries in the region, Mexico reported the largest number of rooms In Construction with 7,957 rooms. Three other countries reported more than 500 rooms In Construction: Bahamas (2,681 rooms); Cuba (1,176 rooms); and the Dominican Republic (715 rooms).

The Central/South America hotel development pipeline comprises 439 hotels totaling 70,970 rooms. The total Under Contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the unconfirmed stage.

Among the Chain Scale segments, four segments each accounted for more than 15.0 percent of rooms Under Contract: the Upscale segment (20.6 percent with 14,628 rooms); the Upper Midscale segment (20.6 percent with 14,620 rooms); the Midscale segment (20.4 percent with 14,487 rooms); and the Upper Upscale segment (18.5 percent with 13,118 rooms). The Unaffiliated segment accounted for the smallest portion of rooms Under Contract with 3.6 percent and 2,575 rooms.

Four segments each accounted for more than 15.0 percent of rooms In Construction: the Upscale segment (27.4 percent with 7,225 rooms); the Upper Midscale segment (19.6 percent with 5,165 rooms); the Midscale segment (18.6 percent with 4,911 rooms); and the Upper Upscale segment (17.6 percent with 4,635 rooms).