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STR: EMEA, US, Caribbean/Mexico, and Central/South America hotel pipeline for March 2016

The Under Contract total in the Middle East subcontinent represents a 40.9% increase in rooms Under Contract compared with March 2015 and a 42.7% year-over-year increase in rooms In Construction. STR’s March 2016 Pipeline Report shows 163,943 rooms in 1,131 projects Under Contract in Europe and 499,492 rooms in 4,071 projects Under Contract in the United States.

STR’s March 2016 Pipeline Report shows 151,654 rooms in 536 hotels Under Contract in the Middle East and 61,585 rooms in 317 hotels 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 subcontinent represents a 40.9% increase in rooms Under Contract compared with March 2015 and a 42.7% year-over-year increase in rooms In Construction. The Middle East reported 80,423 rooms in 251 hotels under construction for the month.

The Under Contract total in the Northern Africa and Southern Africa subcontinents represents a 46.1% increase in rooms Under Contract compared with March 2015 and a 48.0% year-over-year increase in rooms In Construction. Africa reported 30,625 rooms in 161 hotels under construction for the month.

Among the key markets in the Middle East and Africa, Makkah, Saudi Arabia, reported the largest number of rooms In Construction with 21,056 rooms in 13 hotels. Three other markets reported more than 5,000 rooms In Construction: Dubai, United Arab Emirates (20,640 rooms in 66 hotels); Riyadh, Saudi Arabia (6,878 rooms in 31 hotels); and Doha, Qatar (5,724 rooms in 26 hotels).

Europe hotel pipeline
STR’s March 2016 Pipeline Report shows 163,943 rooms in 1,131 projects Under Contract in Europe. The total represents a 17.9% increase in rooms Under Contract compared with March 2015 and a 6.7% year-over-year increase in rooms In Construction.

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

The region reported 63,150 rooms in 448 projects In Construction for the month.

Among Chain Scale segments, the Upper Midscale segment accounted for the largest portion of rooms Under Contract (23.7% with 38,806 rooms) and In Construction (22.0% with 13,893 rooms).

Two other segments each accounted for more than 15.0% of rooms Under Contract: Upscale (19.5% with 32,050 rooms) and Economy (16.8% with 27,614 rooms).

In addition to Upper Midscale, three segments accounted for more than 15.0% of rooms In Construction: Upscale (21.6% with 13,636 rooms), Upper Upscale (17.9% with 11,288 rooms) and Economy (17.7% to 11,155 rooms).

Europe pipeline by Chain Scale for March 2016 (number of rooms)

Chain Scale Existing Supply In Construction Under Contract
Luxury 80,466 3,535 6,450
Upper Upscale 262,587 11,288 23,737
Upscale 533,408 13,636 32,050
Upper Midscale 419,222 13,893 38,806
Midscale 289,995 5,028 15,232
Economy 261,695 11,155 27,614
Unaffiliated 2,784,218 4,615 20,054
Total 4,631,591 63,150 163,943

Source: STR/data current as of 31 March 2016


US hotel pipeline
STR’s March 2016 Pipeline Report shows 499,492 rooms in 4,071 projects Under Contract in the United States. The total represents a 15.2% increase in the number of rooms Under Contract compared with March 2015. 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 153,345 rooms in 1,201 projects. That number of rooms represents a 21.5% increase in year-over-year comparisons. A large portion of the construction activity, roughly 47%, is occurring in the Top 26 Markets by existing supply.

“Regardless of short-term supply and demand swings, the top markets are big demand generators, and most brands want a strong, fresh presence in those markets,” said Bobby Bowers, STR’s senior VP for operations.

Among those Top 26 Markets, New York, New York, reported the most rooms Under Contract (31,394 rooms) and most rooms In Construction (15,145 rooms).

“Obviously there are many factors contributing to the rate-growth challenges in New York, and significant supply growth -with more on the way- is one of them,” Bowers noted. “That said, demand growth continues to outpace supply growth, and occupancies remain high.”

Seven additional markets each reported more than 10,000 rooms Under Contract for the month: Houston, Texas (17,895 rooms); Dallas, Texas (15,480 rooms); Miami/Hialeah, Florida (13,225 rooms); Los Angeles/Long Beach, California (12,452 rooms); Washington, D.C.-Maryland-Virginia (10,450 rooms); Nashville, Tennessee (10,259 rooms); and Orlando, Florida (10,243 rooms).

Seven markets in addition to New York each reported more than 3,000 rooms under construction, but Houston (5,296 rooms) was the only other market to eclipse 5,000 rooms in the In Construction phase.

“It appears oil prices have stabilized and seem to be trending upward, but the movement north will likely take time for Houston,” Bowers said. “That challenge is compounded by the significant supply growth the market has experienced and the more than 5,000 rooms currently under construction. Good times will definitely return in Houston, but 2016 will be a challenging year.”

Three markets each reported fewer than 500 rooms In Construction: Oahu Island, Hawaii (482 rooms); St. Louis, Missouri-Illinois (482 rooms); and Norfolk/Virginia Beach, Virginia (300 rooms).

Top 10 U.S. Markets (In Construction phase)

Market Existing Supply In Construction
March 2016
In Construction
March 2015
In Construction
YOY % change
New York, NY 110,879 15,145 13,081 +15.8%
Houston, TX 81,173 5,296 6,173 -14.2%
Los Angeles/Long Beach, CA 97,588 4,931 2,820 +74.9%
Dallas, TX 80,412 4,428 2,243 +97.4%
Miami/Hialeah, FL 52,565 4,297 4,026 +6.7%
Las Vegas, NV 167,642 3,905 104 +3654.8%
Chicago, IL 111,438 3,186 3,572 -10.8%
Washington, DC-MD-VA 108,450 3,146 3,435 -8.4%
Denver, CO 43,975 2,876 1,719 +67.3%
Seattle, WA 42,847 2,647 2,427 +9.1%

Source: STR / data current as of 31 March 2016.


Central/South America hotel pipeline
STR’s March 2016 Pipeline Report shows 73,203 rooms in 461 projects Under Contract in the Central/South America region. The total represents a 4.8% increase in rooms Under Contract compared with March 2015 and a 10.1% year-over-year increase in rooms In Construction.

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

The region reported 32,123 rooms in 193 projects In Construction for the month.

Among Chain Scale segments, Upper Midscale (20.7% with 15,189 rooms) and Midscale (20.7% with 15,170 rooms) were the only two segments to account for 20.0% or more of the rooms Under Contract in the region.

In the In Construction stage, the Upscale segment (21.5% with 6,916 rooms) accounted for the largest portion of rooms. Upper Midscale (21.1% with 6,788 rooms) was the only other segment with 20.0% or more of rooms In Construction.

Central/South America pipeline by Chain Scale for March 2016 (number of rooms)

Chain Scale Existing Supply In Construction Under Contract
Luxury 13,897 3,406 4,511
Upper Upscale 38,027 5,015 12,090
Upscale 63,620 6,916 14,388
Upper Midscale 46,963 6,788 15,189
Midscale 27,144 5,817 15,170
Economy 8,055 3,017 9,534
Unaffiliated 262,223 1,164 2,321
Total 459,929 32,123 73,203

Source: STR/data current as of 31 March 2016.

Caribbean/Mexico hotel pipeline
STR’s March 2016 Pipeline Report shows 30,716 rooms in 182 hotels Under Contract in the Caribbean/Mexico region. The total represents a 5.1% increase in rooms Under Contract compared with March 2015 and a 32.0% year-over-year increase in rooms In Construction.

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

The region reported 13,396 rooms in 78 projects In Construction for the month.

Among Chain Scale segments, the Luxury segment accounted for the largest portion of rooms Under Contract (21.1% with 6,488 rooms) and In Construction (28.1% with 3,766 rooms).

The Upscale segment was the only other segment to account for 20.0% or more rooms Under Contract (20.8% with 6,388 rooms).

Caribbean/Mexico pipeline by Chain Scale for March 2016 (number of rooms)

Chain Scale Existing Supply In Construction Under Contract
Luxury 49,269 3,766 6,488
Upper Upscale 42,164 1,769 5,666
Upscale 81,422 2,543 6,388
Upper Midscale 54,011 2,147 4,389
Midscale 31,114 959 3,276
Economy 5,121 0 150
Unaffiliated 334,783 2,212 4,359
Total 597,884 13,396 30,716

Source: STR/data current as of 31 March 2016.

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