The European region reported 63,759 rooms in 439 projects In Construction for the month. STR’s May 2016 Pipeline Report shows 153,818 rooms in 546 hotels Under Contract in the Middle East and 56,413 rooms in 295 hotels Under Contract in Africa.
LONDON – STR’s May 2016 Pipeline Report shows 145,299 rooms in 960 projects Under Contract in Europe. The total represents a 9.0% increase in rooms Under Contract compared with May 2015 and a 13.3% 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 63,759 rooms in 439 projects In Construction for the month.
Among the countries in the region, the United Kingdom reported the most rooms In Construction with 15,481 rooms in 154 hotels. Three additional countries reported more than 5,000 rooms in the construction phase: Germany (10,535 rooms in 54 hotels); Turkey (8,245 rooms in 54 hotels); and Russia (7,379 rooms in 36 hotels).
Middle East and Africa hotel pipeline
STR’s May 2016 Pipeline Report shows 153,818 rooms in 546 hotels Under Contract in the Middle East and 56,413 rooms in 295 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 32.7% increase in rooms Under Contract compared with May 2015 and an 18.7% year-over-year increase in rooms In Construction. The Middle East reported 81,363 rooms in 252 hotels under construction for the month.
The Under Contract total in the Northern Africa and Southern Africa subcontinents represents a 28.1% increase in rooms Under Contract compared with May 2015 and a 33.9% year-over-year increase in rooms In Construction. Africa reported 30,737 rooms in 158 hotels under construction for the month.
Among the countries in the Middle East and Africa, Saudi Arabia reported the most rooms In Construction with 34,680 rooms in 77 hotels. United Arab Emirates followed with 27,344 rooms in 93 hotels. Three other countries each reported more than 3,000 rooms In Construction: Qatar (7,298 rooms in 31 hotels), Egypt (6,111 rooms in 18 hotels) and Morocco (3,025 rooms in 16 hotels).
US hotel pipeline
STR’s May 2016 Pipeline Report shows 509,626 rooms in 4,151 projects Under Contract in the United States. The total represents a 19.7% increase in the number of rooms Under Contract compared with May 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 phase, the U.S. reported 164,860 rooms in 1,259 projects. That number of rooms represents a 27.3% increase in year-over-year comparisons. A large percentage of construction activity, 46.8%, is occurring in the Top 26 Markets by existing supply.
“Even further than the Top 26 Markets, we are seeing a substantial portion of activity centralized in just a handful of markets,” said Bobby Bowers, STR’s senior VP for operations. “If you look strictly at the five markets at the top of the In Construction list, you have more than 34,000 rooms – roughly one-fifth of all U.S. construction activity.”
Among those markets, New York, New York, reported the most rooms Under Contract (29,961 rooms) and most rooms In Construction (15,193 rooms).
Seven additional markets each reported more than 10,000 rooms Under Contract for the month: Houston, Texas (17,149 rooms); Dallas, Texas (15,926 rooms); Los Angeles/Long Beach, California (13,733 rooms); Miami/Hialeah, Florida (11,735 rooms); Nashville, Tennessee (11,191 rooms); Washington, D.C.-Maryland-Virginia (10,465 rooms); and Chicago, Illinois (10,363 rooms).
“It will be interesting to track how all of this new supply affects the top markets,” Bowers said. “Two good examples of markets already affected are New York and Houston. Trailing 12-month supply growth (through April) for New York was 4%, while demand grew by 4.2%, yielding occupancy growth of 0.2% In Houston, supply growth over the same period was 3.5%, while demand fell by 2.9%, yielding an occupancy decline of 6.2%.”
Seven markets in addition to New York each reported more than 3,000 rooms under construction. Of those, Los Angeles/Long Beach (5,500 rooms) was the only other market to eclipse 5,000 rooms in the In Construction phase.
Two markets each reported fewer than 500 rooms In Construction: St. Louis, Missouri-Illinois (482 rooms), and Norfolk/Virginia Beach, Virginia (456 rooms).
| Market | Existing Supply | In Construction May 2016 |
In Construction May 2015 |
In Construction YOY % change |
| New York, NY | 111,894 | 15,193 | 13,168 | +15.4% |
| Los Angeles/Long Beach, CA | 97,861 | 5,500 | 3,515 | +56.5% |
| Dallas, TX | 80,991 | 4,827 | 2,315 | +108.5% |
| Houston, TX | 81,690 | 4,822 | 6,946 | -30.6% |
| Chicago, IL | 112,281 | 4,379 | 3,370 | +29.9% |
| Las Vegas, NV | 166,436 | 3,927 | 3,929 | -0.1% |
| Washington, DC-MD-VA | 108,748 | 3,617 | 2,665 | +35.7% |
| Miami/Hialeah, FL | 53,343 | 3,554 | 3,557 | -0.1% |
| Denver, CO | 44,061 | 2,966 | 1,829 | +62.2% |
| Seattle, WA | 42,849 | 2,948 | 2,134 | +38.1% |
Source: STR / data current as of 31 May 2016
Central/South America hotel pipeline
STR’s May 2016 Pipeline Report shows 67,053 rooms in 421 projects Under Contract in the Central/South America region. The total represents a 2.7% decrease in rooms Under Contract compared with May 2015 but no year-over-year change in the number of 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 29,627 rooms in 179 projects In Construction for the month.
Among the countries in the region, Brazil reported the most rooms In Construction with 18,497 rooms in 101 hotels. Four additional countries each reported more than 1,000 rooms In Construction: Colombia (3,268 rooms in 21 hotels); Peru (1,064 rooms in nine hotels); Argentina (1,023 rooms in eight hotels); and Panama (1,017 rooms in six hotels).
Caribbean/Mexico hotel pipeline for May 2016
STR’s May 2016 Pipeline Report shows 28,368 rooms in 178 projects Under Contract in the Caribbean/Mexico region. The total represents a 5.8% decrease in rooms Under Contract compared with May 2015 but a 3.0% 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 12,616 rooms in 80 projects In Construction for the month.
Among the countries in the region, Mexico reported the most rooms In Construction with 7,981 rooms in 58 hotels. The Dominican Republic (1,208 rooms in six hotels) was the only other country to report more than 1,000 rooms In Construction.
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.
