"It's a dead-center hit," Patrick Ford, president of Portsmouth, NH-based Lodging Econometrics, tells GlobeSt.com. "The credit crisis and softening lodging operating statistics are having an adverse impact on developers' thinking."
As of the third quarter, Lodging Econometrics counts 5,652 projects totaling 740,272 rooms in its US hotel pipeline. The firm notes that construction starts were down for a second consecutive quarter and that many projects have slid back from scheduled starts over the next 12 months into "early planning" status.
Construction starts have declined during the year to roughly 400 projects nationwide through the third quarter, while cancellations and postponements jumped to 360 between July and September, according to Lodging Econometrics data. The number of new project announcements for the quarter totaled 429, roughly half of those announced in the third quarter of 2007.
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