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HomeRegional NewsAfricaSTR reports US, Caribbean/Mexico, Central/South America, EMEA hotel pipeline for January 2015
Hotel pipeline

STR reports US, Caribbean/Mexico, Central/South America, EMEA hotel pipeline for January 2015

The U.S. development pipeline continues to increase steadily. There are 912 hotels totalling 144,374 rooms Under Contract in Europe, while in the MEA region there are 633 hotels totalling 147,953 rooms Under Contract.

There are 3,644 projects totaling 438,957 rooms Under Contract in the United States, according to the January 2015 STR Pipeline Report. This represents an 18.8-percent increase in the number of rooms Under Contract compared with January 2014 and a 31.8-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.

“The U.S. development pipeline continues to increase steadily. January rooms under construction hit 127,653, an increase of more than 6 percent from December 2014 and about one-third higher than January 2014,” said Bobby Bowers, senior VP of STR, Inc. “Upscale and Upper Midscale brands continue to dominate construction activity, accounting for two-thirds of the total.

“STR anticipates full-year 2015 U.S. room supply growth of 1.3 percent,” Bowers continued. “The pipeline continues to remain relatively in check when compared to the long-term average, which should help the industry maintain its current strong performance metrics. Lending parameters, development costs and the scarcity of some construction materials have led to excellent conditions in the hotel industry that are spurring some growth but not the over-the-top additions we’ve seen during some of the past up cycles.”

Among the Chain Scale segments, the Upper Upscale segment reported the largest increase in rooms in Under Contract, rising 33.7 percent to 33,391 rooms over January 2014. The Luxury segment followed with a 32.2-percent increase to 10,106 rooms. The Economy segment reported the largest decrease in the number of rooms Under Contract (-9.1 percent to 4,043 rooms).

All segments but Economy (-41.3 percent to 685 rooms) and Midscale (+9.5 percent to 5,583 rooms) reported increases in rooms under construction of more than 25.0 percent year over year. The Upper Upscale segment reported the largest increase, rising 79.5 percent to 14,449 rooms. The Upscale segment followed with a 32.2-percent increase to 47,222 rooms.

Caribbean/Mexico hotel pipeline
There are 163 hotels totaling 28,698 rooms Under Contract in the Caribbean/Mexico region. This represents a 6.8-percent increase in rooms Under Contract, compared with January 2014, and a 7.6-percent decrease 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. Among the Chain Scale segments, the Upper Upscale segment reported the largest increase in rooms Under Contract, rising 34.6 percent with 4,529 rooms, followed by the Midscale segment (+25.9 percent with 2,717 rooms) and the Upscale segment (+17.8 percent with 6,109 rooms). The Unaffiliated segment reported the largest decrease in rooms Under Contract, falling 11.3 percent with 4,097 rooms. Looking specifically at the In Construction stage, the Upper Upscale segment reported the largest year-over-year increase in rooms (+39.5 percent with 1,320 rooms). The Midscale segment followed with a 39.0-percent increase to 624 rooms. The Upper Midscale segment reported the largest decrease in rooms in the In Construction phase (-32.6 percent with 1,432 rooms).

Central/South America pipeline
There are 436 hotels totalling 69,718 rooms Under Contract in the Central/South America region. This represents a 14.3-percent year-over-year increase in rooms Under Contract and a 27.9-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. Among the Chain Scale segments, the Upscale segment accounted for the largest portion of rooms Under Contract (21.2 percent with 14,787 rooms). Three other segments each accounted for more than 15.0 percent of rooms Under Contract: the Upper Midscale segment (20.4 percent with 14,189 rooms); Midscale (19.5 percent with 13,583 rooms); and Upper Upscale (19.2 percent with 13,407 rooms). The Unaffiliated segment made up the smallest portion of rooms Under Contract (3.9 percent with 2,710 rooms). The Upscale segment accounted for the largest portion of rooms under construction (27.4 percent with 7,378 rooms), followed by the Midscale segment (17.7 percent with 4,773 rooms) and the Upper Midscale segment (17.6 percent with 4,723 rooms).

Europe pipeline
There are 912 hotels totalling 144,374 rooms Under Contract in Europe. The 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 region’s key markets, Istanbul, Turkey, reported the largest number of rooms under construction with 4,981 rooms. Four other markets ended the month with more than 1,500 rooms under construction: Greater London, England (4,470 rooms); Greater Amsterdam, Netherlands (2,368 rooms); Baku, Azerbaijan (1,654 rooms); and Greater Berlin, Germany (1,642 rooms).

MEA pipeline
There are 633 hotels totalling 147,953 rooms Under Contract in the Middle East/Africa region. The 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, the Upper Upscale segment accounted for the largest portion of rooms in the Under Contract (36.0 percent) with 53,257 rooms. Two other segments each accounted for more than 15.0 percent of rooms in Under Contract: the Upscale segment (20.8 percent with 30,703 rooms) and the Luxury segment (18.8 percent with 27,820 rooms).

The Upper Upscale segment made up the largest portion of rooms under construction (40.3 percent with 29,770 rooms, followed by the Luxury segment (22.2 percent with 16,448 rooms) and the Upscale segment (19.9 percent with 14,699 rooms).

News Editor - TravelDailyNews Media Network | + Posts

Tatiana is the news coordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.

She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.

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