17 Jan, 2015

STR Global Hotel Pipeline: 500,000+ rooms coming up in Asia-Pacific alone

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LONDON, 15 January 2015 (STR media releases) — The Asia Pacific region reported 2,390 hotels comprising 537,726 rooms Under Contract, according to the December 2014 STR Global Construction Pipeline Report. The Under Contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Unconfirmed stage.

Among the Chain Scale segments, the Upscale segment accounted for the largest portion of rooms Under Contract (29.4 percent with 158,356 rooms). Two other segments each made up more than 15.0 percent of rooms Under Contract: Upper Upscale (22.9 percent with 123,154 rooms) and Luxury (16.1 percent with 86,702 rooms).

The Upscale segment accounted for the largest portion of rooms In Construction (28.8 percent with 73,145 rooms), followed by the Upper Upscale segment (26.1 percent with 66,173 rooms).

Asia Pacific pipeline by Chain Scale for December 2014 (number of rooms)

Chain Scale	Existing Supply (as of December 2014)	In Construction	Under Contract*
Luxury	189,936	46,202	86,702
Upper Upscale	282,073	66,173	123,154
Upscale	374,129	73,145	158,356
Upper Midscale	262,294	20,552	60,855
Midscale	212,809	8,214	29,638
Economy	606,095	4,800	9,392
Unaffiliated	1,887,856	34,594	69,629
Total	3,185,192	253,680	537,726

* Includes those projects in the In Construction, Final Planning and Planning stages

US hotel pipeline for December 2014

14 January 2015, HENDERSONVILLE, Tennessee—There are 3,443 projects totaling 412,878 rooms Under Contract in the United States, according to the December 2014 STR Pipeline Report.

This represents a 14.3-percent increase in the number of rooms Under Contract compared with December 2013 and a 31.4-percent increase in rooms in the In Construction phase. The Under Contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Unconfirmed stage.

Among the Top 25 markets, New York, New York, reported the most rooms Under Contract with 27,009 rooms. Others rounding out the top five markets for rooms Under Contract include: Houston, Texas (16,473 rooms); Las Vegas, Nevada (12,278 rooms); Washington, D.C. (11,623 rooms); and Dallas, Texas (10,028 rooms).

New York has the largest number of rooms under construction (13,200 rooms), followed by Houston, which has 5,134 rooms under construction. Three other markets reported more than 3,000 rooms under construction: Washington, D.C. (3,440 rooms); Miami-Hialeah, Florida (3,425 rooms); and Chicago, Illinois (3,102 rooms). Markets with more than 2,000 rooms under construction include: Los Angeles-Long Beach, California (2,777 rooms); Seattle, Washington (2,266 rooms); and San Diego, California (2,195 rooms).

Top 10 U.S. Markets by rooms in the In Construction phase*

Market	Existing Supply	In Construction   December 2014	In Construction December 2013	In Construction YOY % change
New York, New York	112,925	13,200	11,189	+18.0%
Houston, Texas	76,721	5,134	1,930	+166.0%
Washington, D.C.	106,925	3,440	2,819	+22.0%
Miami-Hialeah, Florida	49,863	3,425	1,975	+73.4%
Chicago, Illinois	109,660	3,102	1,892	+64.0%
Los Angeles-Long Beach, California	97,908	2,777	2,523	+10.1%
Seattle, Washington	41,266	2,266	1,242	+82.4%
San Diego, California	59,691	2,195	812	+170.3%
Anaheim, California	54,915	1,932	869	+122.3%
Dallas, Texas	79,043	1,787	1,196	+49.4%

*Data as of 31 December 2014

“The continued tailwind of a recovering U.S. economy has supported strong (revenue-per-available-room) growth across the nation,” said Jan Freitag, senior VP of strategic development for STR, Inc. “As national and regional occupancy has increased, more developers are finding hotel real estate attractive again, and we are seeing a healthy and unabated increase in new development, mostly in the limited-service sectors.

“A few cities will feel the brunt of the construction, and it will be interesting to note how hoteliers will react in 2016 as these new hotels open,” Freitag added.

Europe hotel pipeline for December 2014

16 January 2015, LONDON—The Europe hotel development pipeline comprises 883 hotels totalling 139,408 rooms, according to the December 2014 STR Global Construction Pipeline Report. The Under Contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Unconfirmed stage.

The region reported 56,413 rooms under construction during December.

Among the countries in the region, the United Kingdom reported the largest number of rooms under construction (10,577 rooms). Russia followed with 9,269 rooms under construction. Rounding out the top four countries for rooms under construction were Turkey (8,513 rooms) and Germany (5,585 rooms).

STR Global: MEA pipeline for December 2014

16 January 2015, LONDON—The Middle East/Africa hotel development pipeline comprises 626 hotels totalling 146,753 rooms, according to the December 2014 STR Global Construction Pipeline Report. The Under Contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Unconfirmed stage.

Among the region’s key markets, Dubai, United Arab Emirates, reported the largest number of rooms under construction (10,969 rooms). Five other markets reported more than 2,000 rooms under construction: Doha, Qatar (6,576 rooms); Makkah, Saudi Arabia (5,936 rooms); Riyadh, Saudi Arabia (5,491 rooms); Abu Dhabi, United Arab Emirates (3,065 rooms); and Jeddah, Saudi Arabia (2,728 rooms).

Central/South America pipeline for December 2014

14 January 2015, LONDON—The Central/South America hotel development pipeline comprises 416 hotels totalling 67,466 rooms, according to the December 2014 STR Global Construction Pipeline Report. The Under Contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Unconfirmed stage.

Among the countries in the region, Brazil reported the most number of hotel projects (275) and rooms (47,074) Under Contract. Four other countries reported at least 2,000 rooms Under Contract: Colombia (5,014 rooms in 32 hotels); Panama (2,809 rooms in 16 hotels); Chile (2,264 rooms in 16 hotels); and Argentina (2,235 rooms in 19 hotels).