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STR: Europe, Middle East, Africa and US hotel pipeline for March 2017

STR recently published the hotel pipeline for March 2017 for Europe, Middle East, Africa and US.

LONDON — STR’s March 2017 Pipeline Report shows 153,298 rooms in 546 hotel projects Under Contract in the Middle East and 59,200 rooms in 319 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 1.1% increase in rooms Under Contract compared with March 2016. Specifically in the In Construction phase, the Middle East reported 79,960 rooms in 258 hotels. Based on number of rooms, that is a 0.6% decrease in year-over-year comparisons. 
Middle East pipeline by Chain Scale (number of rooms):

Chain Scale In Construction Under Contract
Luxury 10,744 20,983
Upper Upscale 23,289 43,619
Upscale 12,163 32,213
Upper Midscale 7,490 16,415
Midscale 3,158 10,813
Economy 0 0
Unaffiliated 23,116 29,255
Total 79,960 153,298

Source: STR / report as of March 2017, activity reported through February 2017 
Under Contract data includes those projects in the In Construction, Final Planning and Planning stages

The Under Contract total in Africa represents a 3.9% decrease in rooms Under Contract compared with March 2016. In the In Construction phase, Africa reported 28,768 rooms in 157 hotels. Based on number of rooms, that is a 6.1% decrease in year-over-year comparisons. 

Africa pipeline by Chain Scale (number of rooms):

Chain Scale In Construction Under Contract
Luxury 3,339 9,081
Upper Upscale 12,139 22,479
Upscale 7,321 14,755
Upper Midscale 1,766 4,523
Midscale 2,947 5,938
Economy 0 0
Unaffiliated 1,256 2,424
Total 28,768 59,200

Source: STR / report as of March 2017, activity reported through February 2017
Under Contract data includes those projects in the In Construction, Final Planning and Planning stages

Central/South America hotel performance for March 2017
STR’s March 2017 Pipeline Report shows 571,311 rooms in 4,721 hotel projects Under Contract in the United States. The total represents a 14.4% increase in the number of rooms Under Contract compared with March 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 190,764 rooms in 1,449 projects. Based on the number of rooms, that is a 24.4% increase in year-over-year comparisons. 

“Construction was actually down a bit from last month, but we’re still nearing the room construction peak (211,000 rooms) reached in 2007,” said Bobby Bowers, STR’s senior VP of operations. “Almost half (47.6%) of hotel room construction activity today is occurring in the major markets. And because room construction in 20 of those markets represents 3% or more of their respective existing supply, it’s no surprise to see muted performance growth.” 

Among the Top 26 Markets, New York, New York, reported the most rooms Under Contract (28,166 rooms) and most rooms In Construction (15,911 rooms). 

“Those almost 16,000 rooms account for 8% of all U.S. construction activity and just under 14% of New York City’s existing supply,” Bowers said.

Three additional markets each reported more than 15,000 rooms Under Contract for the month: Dallas, Texas (18,351 rooms); Houston, Texas (16,774 rooms); and Los Angeles/Long Beach, California (16,510 rooms). 

Two of those markets reported more than 5,000 rooms In Construction: Dallas (7,184 rooms) and Los Angeles/Long Beach (5,924 rooms). 

Two markets each reported fewer than 1,000 rooms In Construction: Norfolk/Virginia Beach, Virginia (456 rooms), and Oahu Island, Hawaii (180 rooms). 
Top 10 U.S. Markets (sorted by In Construction phase)

Market Existing Supply In Construction
March 2017
In Construction
March 2016
In Construction
YOY % change
New York, NY 115,295 15,911 15,145 +5.1%
Dallas, TX 82,710 7,184 4,428 +62.2%
Los Angeles/Long Beach, CA 99,195 5,924 4,931 +20.1%
Seattle, WA 43,485 5,155 2,647 +94.7%
Houston, TX 85,702 4,964 5,296 -6.3%
Nashville, TN 39,959 4,868 1,814 +168.4%
Denver, CO 45,427 4,672 2,876 +62.4%
Las Vegas, NV 164,814 4,207 3,905 +7.7%
Washington, DC-MD-VA 110,452 4,085 3,146 +29.8%
Chicago, IL 114,183 3,840 3,186 +20.5%

Source: STR / report as of March 2017, activity reported through February 2017

Europe hotel performance for March 2017
STR’s March 2017 Pipeline Report shows 162,732 rooms in 1,035 hotel projects Under Contract in Europe. The total represents a 0.7% decrease in rooms Under Contract compared with March 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 73,370 rooms in 461 projects In Construction for the month. Based on number of rooms, that is a 16.2% increase in year-over-year comparisons. 

Among Chain Scale segments, the Upper Midscale segment accounted for the largest portion of rooms Under Contract (27.8% with 45,206 rooms) and In Construction (24.0% with 17,625 rooms).

Upscale (23.1% with 16,927 rooms) was the only other segment to represent 20.0% or more of rooms In Construction. 
Europe pipeline by Chain Scale (number of rooms):

Chain Scale Existing Supply In Construction Under Contract
Luxury 77,000 5,087 7,860
Upper Upscale 269,838 13,320 24,756
Upscale 538,039 16,927 35,821
Upper Midscale 416,054 17,625 45,206
Midscale 298,187 4,505 8,932
Economy 263,458 9,428 16,701
Unaffiliated 2,827,255 6,478 23,456
Total 4,689,831 73,370 162,732

Source: STR / report as of March 2017, activity reported through February 2017
Under Contract data includes those projects in the In Construction, Final Planning and Planning stages

 

Central/South America hotel pipeline for March 2017
STR’s March 2017 Pipeline Report shows 60,284 rooms in 385 hotel projects Under Contract in the Central/South America region. The total represents a 17.7% decrease in rooms Under Contract compared with March 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 region reported 27,421 rooms in 170 projects In Construction for the month. Based on number of rooms, that is a 14.6% decrease in year-over-year comparisons. 

Two Chain Scale segments each accounted for 20.0% or more of the rooms Under Contract in the region: Upper Upscale (22.1% with 13,303 rooms) and Upscale (20.4% with 12,286 rooms). 

Specifically in the In Construction phase, only the Upscale segment (22.5% with 6,164 rooms) accounted for 20.0% or more of the region’s total.   
Central/South America pipeline by Chain Scale (number of rooms):

Chain Scale Existing Supply In Construction Under Contract
Luxury 14,304 2,031 3,272
Upper Upscale 32,860 5,104 13,303
Upscale 64,363 6,164 12,286
Upper Midscale 46,963 4,898 11,364
Midscale 32,591 5,059 11,424
Economy 9,573 3,139 6,851
Unaffiliated 308,744 1,026 1,784
Total 509,398 27,421 60,284

Source: STR / report as of March 2017, activity reported through February 2017
Under Contract data includes those projects in the In Construction, Final Planning and Planning stages

 

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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