STR’s June 2017 Pipeline Report shows 169,046 rooms in 1,100 hotel projects Under Contract in Europe. The total represents a 17.5% increase in rooms Under Contract compared with June 2016. STR’s June 2017 Pipeline Report shows 583,028 rooms in 4,836 hotel projects Under Contract in the United States.
LONDON – STR’s June 2017 Pipeline Report shows 160,120 rooms in 583 hotel projects Under Contract in the Middle East and 56,289 rooms in 310 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 3.6% increase in rooms Under Contract compared with June 2016. Specifically in the In Construction phase, the Middle East reported 94,748 rooms in 300 projects. Based on number of rooms, that is a 15.6% increase in year-over-year comparisons.
Middle East pipeline by Chain Scale (number of rooms)
| Chain Scale | In Construction | Under Contract |
| Luxury | 13,133 | 22,985 |
| Upper Upscale | 26,449 | 44,650 |
| Upscale | 16,538 | 35,512 |
| Upper Midscale | 10,160 | 17,760 |
| Midscale | 4,787 | 10,205 |
| Economy | – | – |
| Unaffiliated | 23,681 | 29,008 |
| Total | 94,748 | 160,120 |
Source: STR / report as of June 2017, activity reported through May 2017. Under Contract data includes those projects in the In Construction, Final Planning and Planning stages
The Under Contract total in Africa represents a 1.0% increase in rooms Under Contract compared with June 2016. In the In Construction phase, Africa reported 28,700 rooms in 165 hotels. Based on number of rooms, that is a 6.5% decrease in year-over-year comparisons.
Africa pipeline by Chain Scale (number of rooms)
| Chain Scale | In Construction | Under Contract |
| Luxury | 3,130 | 7,392 |
| Upper Upscale | 11,596 | 22,115 |
| Upscale | 6,775 | 14,562 |
| Upper Midscale | 1,848 | 4,217 |
| Midscale | 4,244 | 5,662 |
| Economy | – | – |
| Unaffiliated | 1,107 | 2,341 |
| Total | 28,700 | 56,289 |
Source: STR / report as of June 2017, activity reported through May 2017. Under Contract data includes those projects in the In Construction, Final Planning and Planning stages
Europe hotel pipeline
STR’s June 2017 Pipeline Report shows 169,046 rooms in 1,100 hotel projects Under Contract in Europe. The total represents a 17.5% increase in rooms Under Contract compared with June 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 77,263 rooms in 495 projects In Construction for the month. Based on number of rooms, that is a 24.0% increase in year-over-year comparisons.
Among Chain Scale segments, the Upper Midscale segment accounted for the largest portion of rooms Under Contract (27.5% with 46,516 rooms). The Upscale segment represented the largest portion of rooms In Construction (25.3% with 19,570 rooms).
Europe pipeline by Chain Scale segment (number of rooms % change, June 2017 vs. June 2016)
| Chain Scale | In Construction | % Change | Under Contract | % Change |
| Luxury | 5,347 | +55.0% | 8,740 | +30.9% |
| Upper Upscale | 15,524 | +33.5% | 26,839 | +15.2% |
| Upscale | 19,570 | +30.8% | 36,482 | +24.3% |
| Upper Midscale | 16,954 | +19.5% | 46,516 | +13.0% |
| Midscale | 3,291 | -15.3% | 9,361 | +20.5% |
| Economy | 9,647 | -5.1% | 16,911 | -1.0% |
| Unaffiliated | 6,930 | +72.8% | 24,197 | +30.8% |
| Total | 77,263 | +24.0% | 169,046 | +17.5% |
Source: STR / report as of June 2017, activity reported through May 2016
US hotel pipeline
STR's June 2017 Pipeline Report shows 583,028 rooms in 4,836 hotel projects Under Contract in the United States. The total represents an 11.6% increase in the number of rooms Under Contract compared with June 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 186,945 rooms in 1,440 projects. Based on the number of rooms, that is a 12.4% increase in year-over-year comparisons but a 2.5% decrease from the previous month.
“With May as the exception, we have now seen a decrease in room construction totals in three of the last four months,” said Bobby Bowers, STR’s senior VP for operations. “While the month-to-month fluctuations prevent us from definitively calling this a development slowdown, we can certainly point to a significantly lower growth rate year over year in identifying such a trend. Regardless, there will still be plenty of construction and planning activity even with occupancy levels heading toward negative territory.”
Looking at construction activity among the Chain Scale segments, Upper Midscale (62,237 rooms in 610 hotels) accounted for the most rooms In Construction followed by Upscale (58,833 rooms in 434 hotels).
“Those two limited-service segments account for 65% of all U.S. construction activity, and that is not going to change anytime soon with 67% of the Final Planning stage also represented by Upscale and Upper Midscale projects,” Bowers said. “At the same time, Midscale looks to be gaining steam, ranking third in rooms being constructed and in that Final Planning phase.”
Despite representing the lowest number of rooms in the pipeline, the Economy segment reported the largest year-over-year percentage increase for rooms In Construction (+128.0% to 2,440 rooms) and Under Contract (+160.1% to 11,157 rooms).
U.S. pipeline by Chain Scale segment (number of rooms % change, June 2017 vs. June 2016)
| Chain Scale | In Construction | % Change | Under Contract | % Change |
| Luxury | 7,782 | +2.17% | 13,858 | +8.3% |
| Upper Upscale | 26,783 | +31.1% | 58,470 | +21.1% |
| Upscale | 58,833 | +4.0% | 160,615 | +9.7% |
| Upper Midscale | 62,237 | +18.7% | 190,520 | +8.3% |
| Midscale | 9,505 | +48.2% | 57,150 | +65.7% |
| Economy | 2,440 | +128.0% | 11,157 | +160.1% |
| Unaffiliated | 19,365 | -11.4% | 91,258 | -8.9% |
| Total | 186,945 | +12.4% | 583,028 | +11.6% |
Source: STR / report as of June 2017, activity reported through May 2016
Caribbean/Mexico hotel pipeline
STR's June 2017 Pipeline Report shows 41,101 rooms in 236 hotel projects Under Contract in the Caribbean/Mexico region. The total represents a 43.8% increase in rooms Under Contract compared with June 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 13,829 rooms in 86 projects In Construction for the month. Based on number of rooms, that is a 15.4% increase in year-over-year comparisons.
Among Chain Scale segments, the Upscale segment accounted for the largest portion of rooms Under Contract (24.9% with 10,229 rooms) and In Construction (25.2% with 3,485 rooms).
Caribbean/Mexico pipeline by Chain Scale segment (number of rooms % change, June 2017 vs. June 2016)
| Chain Scale | In Construction | % Change | Under Contract | % Change |
| Luxury | 2,885 | +3.3% | 6,357 | +25.7% |
| Upper Upscale | 1,855 | +59.1% | 7,561 | +44.0% |
| Upscale | 3,485 | +28.3% | 10,229 | +49.0% |
| Upper Midscale | 1,951 | -22.2% | 5,132 | +12.9% |
| Midscale | 1,534 | +40.6% | 3,581 | +18.7% |
| Economy | 321 | – | 1,158 | – |
| Unaffiliated | 1,798 | +5.2% | 7,083 | +84.2% |
| Total | 13,829 | +15.4% | 41,101 | +43.8% |
Source: STR / report as of June 2017, activity reported through May 2016
Central/South America hotel pipeline
STR’s June 2017 Pipeline Report shows 58,925 rooms in 378 hotel projects Under Contract in the Central/South America region. The total represents an 11.2% decrease in rooms Under Contract compared with June 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 28,103 rooms in 175 projects In Construction for the month. Based on number of rooms, that is a 2.0% decrease in year-over-year comparisons.
Among Chain Scale segments, the Upper Upscale segment accounted for the largest portion of rooms Under Contract (22.8% with 13,418 rooms).
Upscale accounted for the largest portion of rooms In Construction (24.6% with 6,913 rooms).
Central/South America pipeline by Chain Scale segment (number of rooms % change, June 2017 vs. June 2016)
| Chain Scale | In Construction | % Change | Under Contract | % Change |
| Luxury | 2,479 | -16.5% | 3,578 | -9.4% |
| Upper Upscale | 5,477 | +11.9% | 13,418 | +9.1% |
| Upscale | 6,913 | +12.0% | 12,735 | -5.5% |
| Upper Midscale | 4,123 | -27.8% | 9,700 | -31.9% |
| Midscale | 5,469 | +0.2% | 11,370 | -16.2% |
| Economy | 2,794 | +20.2% | 6,518 | -4.7% |
| Unaffiliated | 848 | -26.0% | 1,606 | -19.2% |
| Total | 28,103 | -2.0% | 58,925 | -11.2% |
Source: STR / report as of June 2017, activity reported through May 2016
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.
