Tuesday, 03 May 2011 18:49
Further declines have brought Construction Pipeline counts to a new cyclical low of 2,951 projects/354,100 rooms in Q1 2011. With 426 projects/54,530 rooms, just 14% of total Pipeline projects and 15% of rooms, Under Construction totals have fallen to lows not seen since the 1990's. Conversely, Early Planning counts have been growing since Q4 2009. Hotels that are larger and have longer timelines are being planned today for when construction financing becomes more accessible.
With fewer projects Under Construction, the rate of New Hotel Openings has slowed. Just 72 hotels/9,051 rooms came online as new supply in Q1 2011, marking the first time in the current cycle that quarterly New Openings have fallen below 100 hotels and 10,000 rooms. LE has decreased its Forecast for New Hotel Openings slightly, with
just 408 hotels/44,035 rooms now expected to open in 2011, and 424 hotels/45,834 rooms, representing supply growth of between 0.7%-0.9% each year.
Launched in 1995 with the encouragement of Wall Street analysts and many Lodging Industry leaders, Lodging Econometrics (LE) is the recognized authority on all hotel real estate including the Development Pipeline and the Sale and Transfer of Lodging Real Estate nationwide. LE also compiles and maintains the Industry's Census of Open and Operating Hotels including the Names of Owners & Management for more than 60,000 hotels in the U.S. and Canada.
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