PORTSMOUTH, NH—The fourth quarter of 2016 represented the 19th consecutive three-month period of growth in the hotel construction pipeline, Lodging Econometrics said Thursday. On a year-over-year basis, the Q4 pipeline of 4,960 projects and 598,688 keys represented a 12% increase in the number of projects, while the number of rooms was up 10%. It's a far cry from the cyclical bottom of 2,720 projects and 331,129 keys reported in Q1 2012.
At year-end, there were 1,520 projects containing 196,409 keys under construction, up by 208 projects of 16% on a Y-O-Y basis, according to LE data. Projects scheduled to start in the next 12 months, at 2,392 projects/268,843 keys, were up by 466 projects, or 24% Y-O-Y.
One metric is down, though, as projects in early planning saw an 11% Y-O-Y decline in Q4, to 1,048 projects and 133,436 keys. LE notes that some projects are rapidly migrating up the pipeline towards construction in anticipation of future interest rate increases. Accordingly, construction starts in '16, at 1,166 projects/142,563 keys, were at an eight-year high.
New project announcements into the pipeline during 2015-'16 were at the highest levels since 2008, while conversions were at a 10-year high. Reflecting “a modestly improving economy,” overall pipeline growth has been moderately up-trending since early '12, LE says. Economic indicators suggest that the pipeline may continue to grow for at least another two years.
Looking at the worldwide picture, LE said in December that the total global pipeline had 11,547 projects/1,953,784 rooms, up 6% by projects and 4% by rooms Y-O-Y.
For hotels currently under construction, the global pipeline has 5,417 projects and 1,008,948 keys, both within 1% of last year's total, according to LE data. However, as of December there were 3,514 projects/504,938 keys scheduled to start construction in the next 12 months, up 22% by projects and 19% by keys. Projects in early planning, at 2,616 projects/439,898 keys, were down 1% by projects and 34% by keys.
PORTSMOUTH, NH—The fourth quarter of 2016 represented the 19th consecutive three-month period of growth in the hotel construction pipeline, Lodging Econometrics said Thursday. On a year-over-year basis, the Q4 pipeline of 4,960 projects and 598,688 keys represented a 12% increase in the number of projects, while the number of rooms was up 10%. It's a far cry from the cyclical bottom of 2,720 projects and 331,129 keys reported in Q1 2012.
At year-end, there were 1,520 projects containing 196,409 keys under construction, up by 208 projects of 16% on a Y-O-Y basis, according to LE data. Projects scheduled to start in the next 12 months, at 2,392 projects/268,843 keys, were up by 466 projects, or 24% Y-O-Y.
One metric is down, though, as projects in early planning saw an 11% Y-O-Y decline in Q4, to 1,048 projects and 133,436 keys. LE notes that some projects are rapidly migrating up the pipeline towards construction in anticipation of future interest rate increases. Accordingly, construction starts in '16, at 1,166 projects/142,563 keys, were at an eight-year high.
New project announcements into the pipeline during 2015-'16 were at the highest levels since 2008, while conversions were at a 10-year high. Reflecting “a modestly improving economy,” overall pipeline growth has been moderately up-trending since early '12, LE says. Economic indicators suggest that the pipeline may continue to grow for at least another two years.
Looking at the worldwide picture, LE said in December that the total global pipeline had 11,547 projects/1,953,784 rooms, up 6% by projects and 4% by rooms Y-O-Y.
For hotels currently under construction, the global pipeline has 5,417 projects and 1,008,948 keys, both within 1% of last year's total, according to LE data. However, as of December there were 3,514 projects/504,938 keys scheduled to start construction in the next 12 months, up 22% by projects and 19% by keys. Projects in early planning, at 2,616 projects/439,898 keys, were down 1% by projects and 34% by keys.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
