According to Lodging Econometrics, a Portsmouth, New Hampshire-based strategic intelligence and consulting company serving the hospitality and lodging industry, the total number of hotel construction projects in 2014 reached a six-year high. A total of 3,645 projects, comprising more than 460,000 rooms, were identified by Lodging Econometrics. The data indicates five consecutive quarters of double-digit year-over-year growth.
The Lodging Econometrics data included all known hotel projects in the construction pipeline, including those in the early planning stages, those expected to begin within the next 12 months, and those currently under construction.
Total hotel projects under construction were 1,086 in the fourth quarter of 2014, with a total of 136,442 rooms. In contrast, the number for the fourth quarter of 2013 were 793 under construction for a total of 101,735 rooms.
More than 1,200 hotel projects were in the early planning stages as of the fourth quarter of 2014, compared to 1,071 in the fourth quarter of 2013. These projects represent hotels that are expected to be completed and in operation within three to five year.
Projects expected to begin within 12 months were listed at 1,351 in the fourth quarter of 2014 and 1,156 during the same period in 2013.
Though current construction trends in the hotel industry are showing encouraging signs of significant growth, the industry still hasn’t bounced back to levels seen in 2007. In that year, the total number of projects in the construction pipeline was 5,438, totaling 718,387 rooms.
Construction Monitor regularly reports on trends and developments in the U.S. construction industry, including housing starts, building permit issuances and important construction events. Contact us today for more information on the latest trends in hotel construction throughout the United States.