A total of 372 new U.S. hotel projects with 45,084 rooms
were announced in the first half of 2021, with 202 of those 25,653 rooms
announced in the second quarter, representing a 20 percent year-over-year
announcement increase for Q2, according to the latest U.S. construction
pipeline report from Lodging Economics.
For the first half of 2021, 472 new hotels with 59,034 rooms
opened in the United States, and Lodging Econometrics is forecasting another
450 projects with 51,754 rooms to open during the second half of 2021,
a 2 percent increase in new supply for 2022. In its first forecast
for 2023, the company anticipates another 2 percent supply increase, with an additional 997 projects with 115,271 rooms.
Currently under construction are 1,165 projects with 159,581
rooms, and those anticipated to start within the next 12 months total 1,843
projects with 213,744 rooms, according to Lodging Econometrics. Those in the early
planning stages stand at 1,779 projects with 224,786 rooms. The increase in
projects in the early stages reflects a combination of developer confidence to
initiate new construction projects and the recalibration of timelines
for some existing projects, according to the company.
Conversions continue to hold strong, with 1,181 active
conversion projects with 128,810 rooms in the first half of 2021. Renovations
for the same period totaled 1,152 projects with 238,110 rooms.
Top Markets by Pipeline
New York City took the top spots for the U.S. market with
the largest construction pipeline at the close of the second quarter (146
projects with 25,232 rooms), the most projects under construction (111 with
19,582 rooms), the highest number of hotels forecast to open in 2021 (59
projects with 8,583 rooms) for a 7.2 percent supply increase, as well as the
highest number of hotels expected to open in 2022 (46 projects with 7,934 rooms).
Following New York, the four cities with the largest hotel construction
pipelines in the United States were Los Angeles (135 projects with 22,586
rooms), Dallas (132 projects with 16,183 rooms), Atlanta (129 projects with 17,845
rooms) and Nashville (91 projects with 12,703 rooms).
Cities with the most projects under construction after New
York were Atlanta, Los Angeles, Dallas and Austin, Tex. Combined, these five
markets account for nearly 25 percent of the total number of rooms currently
under construction in the U.S., according to Lodging Econometrics.