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

The Under Contract total in the Middle East subcontinent represents a 40.7% increase in rooms Under Contract compared with February 2015. The Under Contract total in the Northern Africa and Southern Africa subcontinents represents a 47.6% increase in rooms Under Contract compared with February 2015.

STR’s February 2016 Pipeline Report shows 151,454 rooms in 538 hotels Under Contract in the Middle East and 62,192 rooms in 321 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 40.7% increase in rooms Under Contract compared with February 2015 and a 42.5% year-over-year increase in rooms In Construction. The Middle East reported 80,344 rooms in 252 hotels under construction for the month.

The Under Contract total in the Northern Africa and Southern Africa subcontinents represents a 47.6% increase in rooms Under Contract compared with February 2015 and a 42.8% year-over-year increase in rooms In Construction. Africa reported 29,565 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 34,753 rooms in 77 hotels. United Arab Emirates followed with 26,957 rooms in 92 hotels. Four other countries each reported more than 3,000 rooms In Construction: Qatar (5,980 rooms in 26 hotels), Egypt (4,538 rooms in 13 hotels) and Morocco (3,619 rooms in 19 hotels).

STR’s February 2016 Pipeline Report shows 163,826 rooms in 1,139 hotels Under Contract in Europe. The total represents a 14.9% increase in rooms Under Contract compared with February 2015 and an 8.6% 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 62,885 rooms in 465 hotels under construction for the month.

Among the countries in the region, the United Kingdom reported the most rooms under construction with 14,785 rooms in 178 hotels. Three additional countries reported more than 5,000 rooms under construction: Germany (9,169 rooms in 44 hotels); Turkey (8,341 rooms in 51 hotels); and Russia (7,959 rooms in 39 hotels).

US hotel pipeline
STR’s February 2016 Pipeline Report shows 497,409 rooms in 4,057 projects Under Contract in the United States. The total represents a 14.2% increase in the number of rooms Under Contract compared with February 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 150,406 rooms in 1,171 projects. That number of rooms represents a 16.7% increase in year-over-year comparisons.

“Industry demand growth is slowing and supply growth is picking up. As a result, occupancy gains are shrinking,” said Bobby Bowers, STR’s senior VP for operations.  “The increase in construction activity means more supply will come online at a point fairly late in the current cycle. The focus for hoteliers will be on whether demand can keep pace and how pricing will be affected.”

Among the Chain Scale segments, Upper Midscale (50,826 rooms in 514 hotels) accounted for the most rooms In Construction followed by Upscale (50,139 rooms in 363 hotels).

“The Upscale and Upper Midscale segments offer lower lending risk and lower barriers to entry,” Bowers said. “More markets can accommodate these products and consumers like them. Supply growth in these two segments has led the industry for years and will continue to do so in 2016.”

The Economy segment reported the least contract and construction activity but the largest year-over-year increases in rooms Under Contract (+124.0% to 8,548 rooms) and In Construction (+158.6% to 2,092 rooms).

All segments with the exception of Unaffiliated (-5.7% to 95,091) posted an increase in rooms Under Contract. All segments with the exception of Upper Upscale (-8.7% to 12,818 rooms) reported an increase in rooms In Construction.

U.S. pipeline by Chain Scale segment (number of rooms % change February 2016 versus February 2015)

Chain Scale Existing Supply % Change In Construction % Change Under Contract % Change
Luxury 109,069 +1.8% 7,880 +69.8% 12,366 +42.2%
Upper Upscale 582,344 +1.5% 12,818 -8.7% 43,664 +31.0%
Upscale 671,470 +5.7% 50,139 +3.5% 142,044 +12.9%
Upper Midscale 894,820 +2.1% 50,826 +32.7% 163,727 +21.1%
Midscale 473,114 -0.2% 5,887 +11.7% 31,969 +14.6%
Economy 782,087 -0.1% 2,092 +158.6% 8,548 +124.0%
Unaffiliated 1,534,178 -0.2% 20,764 +19.6% 95,091 -5.7%
             
Total 5,047,082 +1.2% 150,406 +16.7% 497,409 +14.2%

Central/South America hotel pipeline
STR’s February 2016 Pipeline Report shows 74,668 rooms in 473 hotels Under Contract in the Central/South America region. The total represents a 3.9% increase in rooms Under Contract compared with February 2015 and a 16.4% 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 33,516 rooms in 205 hotels under construction for the month.

Among the countries in the region, Brazil reported the most rooms In Construction with 21,269 rooms in 116 hotels. Four additional countries each reported more than 1,000 rooms under construction: Colombia (3,433 rooms in 25 hotels); Argentina (1,508 rooms in 12 hotels); Chile (1,143 rooms in nine hotels); and Panama (1,113 rooms in seven hotels).

Caribbean/Mexico hotel pipeline for February 2016
STR’s February 2016 Pipeline Report shows 31,866 rooms in 185 hotels Under Contract in the Caribbean/Mexico region. The total represents a 10.2% increase in rooms Under Contract compared with February 2015 and a 42.2% 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 14,393 rooms in 80 hotels under In Construction for the month.

Among the countries in the region, Mexico reported the most rooms In Construction with 8,343 rooms in 58 hotels.

Co-Founder & Chief Editor - TravelDailyNews Media Network | Website | + Posts

Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.

She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.

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