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by Michael J. Shapiro | August 18, 2010

The number of rooms in the active U.S. hotel development pipeline continues to decline, according to the July 2010 STR/TWR/Dodge Construction Pipeline Report released last week. The 3,412 projects currently in development represent a 26 percent decrease in room count compared with July 2009. The Economy segment reported the steepest drop, a 64 percent year-over-year decrease, to 5,286 rooms. In a forecast released by Lodging Econometrics for the rest of the Americas, South America is expected to experience cyclical highs over the next three years, with 29,000 rooms due to open by the end of 2012. Brazil's new openings represent 62 percent of that total. Mexico is expected to experience a 133 percent growth in room openings between this year and 2012. Canada, meanwhile, is expected to continue to decline through 2012; its last peak year was 2008.