Europe reported 63,353 rooms in 424 projects In Construction for the month, which is an 18.4% increase in year-over-year comparisons.
STR’s July 2016 Pipeline Report shows 148,483 rooms in 966 projects Under Contract in Europe. The total represents a 13.0% increase in rooms Under Contract compared with July 2015.
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 63,353 rooms in 424 projects In Construction for the month, which is an 18.4% increase in year-over-year comparisons.
Among the region’s key markets, Greater London, England, reported the most rooms In Construction with 5,400 rooms in 32 hotels. Three other markets reported more than 2,000 rooms In Construction: Istanbul, Turkey (4,192 rooms in 24 hotels); Moscow, Russia (3,632 rooms in 15 hotels); and Greater Berlin, Germany (2,467 rooms in seven hotels).
Middle East and Africa hotel pipeline for July 2016
STR’s July 2016 Pipeline Report shows 155,899 rooms in 552 projects Under Contract in the Middle East and 56,227 rooms in 295 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 an 18.8% increase in rooms Under Contract compared with July 2015. Specifically in the In Construction phase, the Middle East reported 83,194 rooms in 259 hotels, a 12.2% increase in year-over-year comparisons.
The Under Contract total in Africa represents a 23.8% increase in rooms Under Contract compared with July 2015. Specifically in the In Construction phase, Africa reported 29,928 rooms in 155 hotels, a 21.3% increase in year-over-year comparisons.
Two of the key markets in the Middle East and Africa reported more than 20,000 rooms In Construction: Makkah, Saudi Arabia (21,835 rooms in 13 hotels) and Dubai, United Arab Emirates (20,882 rooms in 67 hotels). Two additional markets reported more than 5,000 rooms In Construction: Doha, Qatar (6,830 rooms in 30 hotels), and Riyadh, Saudi Arabia (6,657 rooms in 30 hotels).
US hotel pipeline for July 2016
STR’s July 2016 Pipeline Report shows 529,665 rooms in 4,322 projects Under Contract in the United States. The total represents a 22.9% increase in the number of rooms Under Contract compared with July 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 171,276 rooms in 1,305 projects, a 32.6% increase in year-over-year comparisons. A large percentage of construction activity, 47.7%, continues in the Top 26 Markets by existing supply.
Among those markets, New York, New York, reported the most rooms Under Contract (30,700 rooms) and most rooms In Construction (15,770 rooms).
“New York continues to lead in development with roughly 9% of all U.S. hotel construction activity,” said Bobby Bowers, STR’s senior VP for operations. “The more than 15,000 rooms in the In Construction phase represent 14% of New York’s existing supply, and that is likely to continue with more than 6,500 rooms in Final Planning. This type of development creates a strong headwind for near-term market performance.”
Two additional markets each reported more than 15,000 rooms Under Contract for the month: Houston, Texas (18,232 rooms), and Dallas, Texas (16,219 rooms).
Three markets in addition to New York each reported more than 5,000 rooms In Construction: Los Angeles/Long Beach, California (5,633 rooms), Dallas (5,562 rooms) and Houston (5,381 rooms).
“Continued supply increases combined with continued weakness in the oil industry likely means continued challenges for existing hotel operators in Houston,” Bowers said.
Three markets each reported fewer than 1,000 rooms In Construction: St. Louis, Missouri-Illinois (943 rooms); Oahu Island, Hawaii (892 rooms); and Norfolk/Virginia Beach, Virginia (456 rooms).
Bowers also noted that San Francisco/San Mateo, California, reported the fifth-lowest In Construction total (1,376 rooms). However, that total represents 2.7% of the market’s existing supply.
“San Francisco has been a top performer amongst the top markets, but hoteliers may feel the effects of new supply in the coming months,” Bowers said.
Top 10 U.S. Markets (In Construction phase)
| Market | Existing Supply | In Construction July 2016 |
In Construction July 2015 |
In Construction YOY % change |
| New York, NY | 112,468 | 15,770 | 14,094 | +11.9% |
| Los Angeles/Long Beach, CA | 98,009 | 5,633 | 3,494 | +61.2% |
| Dallas, TX | 80,996 | 5,562 | 2,841 | +95.8% |
| Houston, TX | 82,069 | 5,381 | 6,970 | -22.8% |
| Denver, CO | 44,186 | 4,451 | 1,789 | +148.8% |
| Chicago, IL | 112,455 | 4,287 | 2,745 | +56.2% |
| Las Vegas, NV | 166,378 | 3,832 | 3,929 | -2.5% |
| Washington, DC-MD-VA | 109,144 | 3,612 | 2,996 | +20.6% |
| Seattle, WA | 43,007 | 3,358 | 1,701 | +97.4% |
| Miami/Hialeah, FL | 53,488 | 2,822 | 3,314 | -14.8% |
Source: STR / report as of July 2016, activity reported through June 2016
Central/South America hotel pipeline
STR’s July 2016 Pipeline Report shows 65,224 rooms in 412 projects Under Contract in the Central/South America region. The total represents a 4.0% decrease in rooms Under Contract compared with July 2015.
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 27,908 rooms in 172 projects In Construction for the month, an 8.9% decrease in year-over-year comparisons.
Among the region’s key markets, Rio de Janeiro, Brazil (1,670 rooms in seven hotels), reported the largest number of rooms In Construction. Two other markets reported more than 1,000 rooms In Construction: Sao Paulo, Brazil (1,303 rooms in six hotels), and Bogotá, Colombia (1,031 rooms in four hotels).
Caribbean/Mexico hotel pipeline
STR’s July 2016 Pipeline Report shows 28,417 rooms in 174 projects Under Contract in the Caribbean/Mexico region. The total represents a 2.4% decrease in rooms Under Contract compared with June 2015.
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 12,960 rooms in 80 projects In Construction for the month, a 3.1% decrease in year-over-year comparisons.
Among the region’s key markets, Central Mexico (4,151 rooms in 32 hotels) reported the largest number of rooms In Construction, followed by the Dominican Republic (1,512 rooms in six hotels) and Yucatán Peninsula, Mexico (1,497 rooms in eight hotels).
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.
