STR’s Director of Global Census Dominik Kozissnik shared insights into the U.S. hotel supply pipeline, which includes breaking it down by brands and major markets.
Kozissnik’s presentation provided views of the U.S. pipeline from overhead—total U.S. and the big brands—and the ground, breaking down growth trends in major markets.
Total US
The active pipeline for total U.S., according to STR data, includes 5,200 projects with about 619,600 rooms, fairly equally divided into three phases—planning, final planning and in construction.
Of those projects, 43% are in suburban markets and 24% are in urban markets, Kozissnik said. Also, 85% of projects in the U.S. pipeline have 150 rooms or fewer, the data shows.
NASHVILLE, Tennessee—The year 2020 looks to be a big one for U.S. hotel openings, according to pipeline data from STR, which shows 34% of rooms in planning, final planning or construction are projected to come online that year.
(STR is parent company of Hotel News Now.)
But, as STR’s Director of Global Census Dominik Kozissnik pointed out during the “Hotel supply pipeline: Visualizing the growth” presentation at the recent Hotel Data Conference, a lot can happen between now and 2020.
“If you look at opening year, you can see the biggest opening year is actually 2020, which there’s a couple of things there,” he said. “That’s kind of a milestone year, so probably a lot of people said, ‘Well, we’ll open in 2020.’ That could be part of it. Also, the further you go out, the less likely it can happen. … There’s still a lot of time to go, and things can not materialize or projects can be canceled.”
Kozissnik’s presentation provided views of the U.S. pipeline from overhead—total U.S. and the big brands—and the ground, breaking down growth trends in major markets.
Total US
The active pipeline for total U.S., according to STR data, includes 5,200 projects with about 619,600 rooms, fairly equally divided into three phases—planning, final planning and in construction.
“We talk about those suburban properties; a lot of those limited-service properties are coming into the market,” Kozissnik said. “It’s amazing how many projects that are 50 to 100 rooms are in the pipeline. Larger properties don’t actually play as big of a role.”
Midscale to upscale classes represent 87% of projects and 79% of rooms in the active pipeline, according to the data.
As the below chart illustrates, the total number of rooms in construction in the U.S. sits at approximately 187,000 through June 2018 and remains below the historical peak of approximately 211,700 in December 2007.