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by Michael J. Shapiro | August 10, 2011

The shrinking U.S. hotel development pipeline won't begin to turn around for at least another year, according to Smith Travel Research. According to data presented at last week's Hotel Data Conference, the industry is unlikely to see any significant increase in supply for the next three to five years. Development in the upper-upscale segment is down 93.5 percent from its December 2007 peak, with slightly more than 4,000 rooms in the pipeline. Luxury segment development, which also consists of about 4,000 rooms, has fallen by 74 percent from that time. The upper-upscale and upscale segments are poised to see the most growth over the next three years, according to STR, but with only slight year-over-year additions.