US hotel October pipeline declines

14th November 2011 (Last Updated November 14th, 2011 18:30)

The number of rooms in the total active US hotel development pipeline fell by 9% in October 2011 compared with October 2010, according to the STR/McGraw Hill Construction Dodge Pipeline Report.

The number of rooms in the total active US hotel development pipeline fell by 9% in October 2011 compared with October 2010, according to the STR/McGraw Hill Construction Dodge Pipeline Report.

The hotel development pipeline comprises 2,835 projects, totalling 310,387 rooms.

The data includes projects in the in construction, final planning and planning stages, and excludes projects in the pre-planning stage.

Vail Brown, STR VP of global sales and marketing, said that in the coming years, new room supply growth will remain muted for the overall industry, except for the New York City market.

Currently, rooms under construction represent 7% of their existing supply base.

In the in construction phase, Nashville, Tennessee, reported the largest growth in rooms, with a 333.1% rise, representing 1,490 rooms.

Philadelphia, Pennsylvania, and Washington, District of Columbia, also reported significant year-on-year increases in rooms under construction, with 120% and 67.4%, respectively.

Chicago, Illinois, registered a decline of 38.2% with 724 rooms, the largest fall in rooms under construction.