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Global Hotel Supply Pipeline Continues Decline

The global pipeline for new lodging supply has continued to plunge, according to first-quarter statistics from Lodging Econometrics.

By Maria Wood | Updated on July 09, 2009

After peaking in the second quarter of 2008 at 10,781 projects with 1.8 million rooms, the global pipeline for new lodging supply has continued to plunge, according to first-quarter statistics from Lodging Econometrics. LE’s latest reports counts 9,108 projects with 1.5 million rooms, a decline of 16% and 17%, respectively, since Q2 last year.

“Since the peak in the second quarter of last year, it’s been going down quarter over quarter and we expect it to continue to go down for some time yet,” Patrick Ford, president of Portsmouth, NH-based LE, tells GlobeSt.com.

LE’s pipeline includes construction starts, cancellations/postponements and new project announcements. For the fifth consecutive quarter, cancellations/postponements rose to a worldwide total of 975 projects/158,873 rooms. Of that, 23% were already under construction, and a sizable portion were larger properties in the luxury, upper-upscale and casino segments, which are the most difficult to finance at this time.

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