The U.S. hotel pipeline for July dropped 6.9 percent in number of rooms in development, year-over-year, according to the STR/McGraw Hill Construction Dodge Pipeline Report, issued last week by STR. The 2,745 projects in the pipeline total 300,954 rooms, which include projects in the In Construction, Final Planning and Planning stages. The number of rooms under construction, however, jumped 12.6 percent over last July. Strong occupancy and average daily rate numbers are driving hotel companies to open new properties, according to STR. "Not surprisingly," added Duane Vinson, STR vice president of database content and integrity, "the Upscale and Upper Midscale segments, which have performed remarkably well during the recovery, led all other segments with a 33.3 percent and 12.0 percent increase in rooms under construction, respectively."