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STR: EMEA, US, Caribbean/Mexico and Central/South America hotel pipeline for April 2017

Europe reported 77,280 rooms in 484 projects In Construction for the month. Based on number of rooms, that is a 22.0% increase in year-over-year comparisons. STR’s April 2017 Pipeline Report shows 580,427 rooms in 4,843 hotel projects Under Contract in the United States.

LONDON – STR’s April 2017 Pipeline Report shows 167,950 rooms in 1,068 hotel projects Under Contract in Europe. The total represents a 15.3% increase in rooms Under Contract compared with April 2016. 

Under Contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Unconfirmed stage.

Europe reported 77,280 rooms in 484 projects In Construction for the month. Based on number of rooms, that is a 22.0% increase in year-over-year comparisons.

Six key markets reported more than 2,000 rooms In Construction: 

  • London, England (4,730 rooms in 27 projects)
  • Istanbul, Turkey (4,595 rooms in 25 projects)
  • Moscow, Russia (3,488 rooms in 16 projects)
  • Berlin, Germany (2,691 rooms in nine projects)
  • Munich, Germany (2,676 rooms in 12 projects)
  • Amsterdam, The Netherlands (2,595 rooms in 12 projects)

Middle East and Africa hotel pipeline
STR’s April 2017 Pipeline Report shows 156,445 rooms in 563 hotel projects Under Contract in the Middle East and 59,632 rooms in 324 projects Under Contract in Africa. 

Under Contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Unconfirmed stage.

The Under Contract total in the Middle East represents a 2.5% increase in rooms Under Contract compared with April 2016. Specifically in the In Construction phase, the Middle East reported 83,980 rooms in 272 hotels. Based on number of rooms, that is a 3.8% increase in year-over-year comparisons. 

The Under Contract total in Africa represents an 8.3% increase in rooms Under Contract compared with April 2016. Specifically in the In Construction phase, Africa reported 31,004 rooms in 172 hotels. Based on number of rooms, that is a 3.8% increase in year-over-year comparisons.

Four key markets in the Middle East and Africa region reported more than 5,000 rooms In Construction: 

  • Makkah, Saudi Arabia (22,455 rooms in 18 projects)
  • Dubai, United Arab Emirates (20,557 rooms in 72 projects)
  • Doha, Qatar (7,343 rooms in 31 projects)
  • Riyadh, Saudi Arabia (5,972 rooms in 29 projects)

US hotel pipeline
STR’s April 2017 Pipeline Report shows 580,427 rooms in 4,843 hotel projects Under Contract in the United States. The total represents a 14.7% increase in the number of rooms Under Contract compared with April 2016. 

Under Contract data includes projects in the In Construction, Final Planning and Planning stages, but does not include projects in the Unconfirmed stage.

In the In Construction stage, the U.S. reported 189,806 rooms in 1,456 projects. Based on the number of rooms, that is a 17.9% increase in year-over-year comparisons. 

“Activity is certainly up year over year, but we have actually seen total room construction numbers decrease for two straight months now,” said Bobby Bowers, STR’s senior VP for operations. “Year-over-year growth also is lower than this time last year, so while we won’t know for sure for another several months, perhaps we are seeing the beginning of a slowing development activity period.”

Looking at construction activity among the Chain Scale segments, Upper Midscale (64,269 rooms in 625 hotels) accounted for the most rooms In Construction followed by Upscale (59,979 rooms in 446 hotels). 

“Limited service still accounts for roughly two-thirds of all hotel construction in the country,” Bowers said. “But the influx of new supply didn’t seem to upset Upscale and Upper Midscale performance during the first quarter. Helped by the Easter calendar shift, room demand growth was the highest in those two segments.”

Despite representing the lowest number of rooms in the pipeline, the Economy segment reported the largest percentage increase for rooms Under Contract (+124.6% to 10,626 rooms). 

The Upper Upscale segment reported the largest percentage increase for rooms In Construction (+66.1% to 26,363 rooms).

U.S. pipeline by Chain Scale segment (number of rooms % change, April 2017 vs. April 2016):

Chain Scale Existing Supply % Change In Construction % Change Under Contract % Change
Luxury  120,073 +10.1%  8,818 +11.9%  13,239 +4.7%
Upper Upscale  590,047 +1.3%  26,363 +66.1%  58,030 +28.8%
Upscale  725,379 +6.9%  59,979 +8.9%  161,067 +13.2%
Upper Midscale  920,198 +2.3%  64,269 +21.0%  192,812 +12.4%
Midscale  481,218 +1.7%  8,277 +35.3%  55,528 +79.0%
Economy  780,983 -0.2%  1,969 +54.3%  10,626 +124.6%
Unaffiliated  1,519,648 -1.1%  20,131 -7.0%  89,125 -9.6%
             
Total 5,137,546 +1.5% 189,806 +17.9% 580,427 +14.7%

Caribbean/Mexico hotel pipeline 
STR’s April 2017 Pipeline Report shows 40,657 rooms in 222 hotel projects Under Contract in the Caribbean/Mexico region. The total represents a 41.6% increase in rooms Under Contract compared with April 2016. 

Under Contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Unconfirmed stage.

The Caribbean/Mexico region reported 15,781 rooms in 86 projects In Construction for the month. Based on number of rooms, that is a 23.2% increase in year-over-year comparisons. 

Three key markets reported more than 1,000 rooms In Construction: 

  • Central Mexico (5,137 rooms in 39 projects)
  • Northwest Mexico (2,010 rooms in 12 projects)
  • Dominican Republic (1,025 rooms in four projects)

Central/South America hotel pipeline 
STR’s April 2017 Pipeline Report shows 61,110 rooms in 390 hotel projects Under Contract in the Central/South America region. The total represents a 10.6% decrease in rooms Under Contract compared with April 2016. 

Under Contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Unconfirmed stage.

The Central/South America region reported 30,014 rooms in 187 projects In Construction for the month. Based on number of rooms, that is a 3.6% decrease in year-over-year comparisons. 

Two key markets reported more than 1,000 rooms In Construction: 

  • Bogota, Colombia (1,582 rooms in six projects)
  • São Paulo, Brazil (1,343 rooms in six projects)
Tatiana Rokou

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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