According to STR pipeline statistics for September 2021, the number of hotel rooms under construction in the United States is sown about 48,000 from the country’s all-time high in April 2020 (220,207 rooms).
The pipeline’s last two phases, construction and final planning are down by double digits from this time last year, but activity in the planning stage has increased substantially.
September 2021 (change in % from September 2020):
172,251 rooms are currently under development (-20.3%)
205.829 rooms are planned in total (-17.2%)
Planning: 263,673 rooms (+41.1%)
“The effects of the pandemic and the related financial implications have reached the hotel development pipeline, as the number of rooms under construction continues to drop,” said Alison Hoyt, senior director of consulting an STR.
“While fewer rooms entering and moving through the pipeline account for some of the loss, new openings delayed by the pandemic also account for some of the loss”.
We’re expecting a higher-than-average flood of new rooms in 2021 overall, provided hotels with anticipated opening dates in the latter months of the year open on time. It is more likely that some of the projects approaching completion will be postponed until 2022.
New York City had over 18,000 rooms under development as of October 1, 2021. Only five other marketplaces have over 5,000 rooms in the final stages of development.
- New York (17,985 rooms)
- Atlanta (5,844 rooms)
- Los Angeles (5,839 rooms)
- Nashville (5,251 rooms)
- Las Vegas (5,195 rooms)
- Dallas ( 5,062 rooms)
“As we move farther into the recovery timetable, New York City is poised for a supply boom,” Hoyt added.
“Demand in the market has been recovering but additional supply from the final wave of pandemic reopening, as well as these new buildings, will continue to put pressure on occupancy levels”.
“The resumption of business travel and groups was always going to be critical for New York City, but the urgency increases when additional inventory is factored in.”