U.S. Hotel Construction Still Surging
There are 126,171 hotel rooms under construction in the United States, according to the March 2015 STR Pipeline Report. Although that represents a 2 percent dip from February's numbers, it marks an increase of nearly 23 percent year-over-year. “While Upscale and Upper Midscale brands continued their dominance of the construction numbers," commented STR VP of operations Bobby Bowers, "Upper Upscale topped 14,000 rooms in construction -- a 45 percent increase vs. March 2014. That rise is another indication that the appetite for risk and return is increasing.” There are 3,566 hotels under contract in the March pipeline, for a total of 433,589 total rooms, a 13.7 percent year-over-year rise. New York City tops U.S. markets with the most rooms under contract (29,928) and the most under construction (13,368). The number of rooms under construction in the city accounts for about 10 percent of total U.S. construction, and represents nearly 12 percent of New York City's existing room supply. Houston ranks a distant second in terms of rooms in the construction phase, with 17,458.