STR’s new hotel pipeline report shows uptick in construction for major US markets
STR’s recently released March 2017 Pipeline Report indicates a 14% increase from this time in 2016 in hotel rooms under contract and a 24.4% increase in rooms under construction. According to the report, there are 4,721 hotel projects and 571,311 rooms under contract in the U.S. 1,449 of these total hotel projects are under construction, while the others are in various stages of being planned.
“Almost of (47.6%) of hotel room construction activity today is occurring in the major markets,” Bobby Bowers, STR’s senior VP of operations said in the report.
New York City tops the list of markets with the most rooms under contract (over 28,000) and the most rooms currently under construction (nearly 16,000), which “account(s) for 8% of all U.S. construction activity and just under 14% of New York City’s existing supply,” said Bowers.
Dallas, Houston, and Los Angeles currently have more than 15,000 rooms under contract, with Dallas and Los Angeles reporting over 5,000 rooms each under active construction.
While STR's report does not detail job opportunities for these planned projects, the robust construction pipelines in the top U.S. hospitality markets indicates that these locations will likely be searching for qualified candidates to staff the upcoming new developments.
Here are the Top 10 US Hotel Construction Markets according to STR: