More than 6,300 new hotels were in the U.S. construction pipeline at the end of April, a 10% increase from the same time last year, including projects proposed, in the final planning phases and getting built.
While the number of hospitality properties that are under construction has remained relatively flat, the number of proposed/final planning projects increased 15% year over year. Nearly 60% of these pipeline projects are located in just 10 states.
Unsurprisingly the two largest states account for the majority of pipeline properties with Texas claiming the largest share with over 800 and California following with over 700. However, several smaller states have seen a significant increase in proposed projects, including Georgia and Tennessee, with over a 26% increase from the same time last year.
In total, more than 1,280 hotel projects were under construction in the U.S. at the end of April, accounting for more than 152,850 rooms. New York City had 18 hotel construction projects adding 4,028 rooms, and Austin, Texas, had 14 hotel projects, adding 1,507 rooms as the two top under-construction markets.
The new hotels in Austin heavily favor Upper Midscale properties flying the Hilton and Wyndham flags, while New York City's new hotels are largely in the Upscale/Upper Upscale class segments operated as independently branded properties.
Chief Executive of CEF, NI Construction’s representative body
7moI pass this regularly and am hugely impressed with the progress being made on such a confined site