by Michael J. Shapiro | October 16, 2017
Natural disasters have taken their toll on various destinations in Mexico and the Caribbean of late, but as of September, the hotel development pipeline in the region has remained robust. According to STR's September 2017 Pipeline Report, the 42,259 rooms under contract represents a hefty 29.3 percent year-over-year increase vs. Sept. 2016. The rooms are spread across 241 hotel projects in the region.
 
Construction, too, proceeded at a brisk pace, growing 25 percent vs. last year. There were 17,450 rooms, across 99 projects, under construction in September.
 
Nearly one-quarter (24.2 percent) of the rooms under contract were in the upscale segment, while upper upscale represented the largest portion under construction, at 23.2 percent. In fact, the 4,050 upper-upscale rooms under construction represented a whopping 171.6 percent year-over-year increase. 
 
The number of upscale rooms rooms under contract (10,242) is 26 percent higher than it was a year ago. Each of the chain scale segments enjoyed significant year-over-year growth, all surpassing 21 percent.