by Michael J. Shapiro | October 13, 2017
While the rate of growth in the U.S. hotel pipeline has slowed considerably, both the pipeline and the number of rooms under construction still represent solid year-over-year growth, according to data from STR.
There are 585,248 hotel rooms under contract, across 4,886 projects, according to STR's September 2017 Pipeline Report. That's a 6.6 percent increase vs. September 2016. Out of that total, 188,479 rooms (1,440 projects) already are under construction, which represents a 5.7 precent year-over-year jump.
"The overall room construction total was down from last month, but outside of Houston, there wasn't a noticeable decline in activity around hurricane-affected markets," said Bobby Bowers, STR's senior VP of operations. "There is still potential for that to change in next month's reporting if damage to existing sites and increased material costs continue to remain a challenge."
The New York City area reported the most rooms under contract (25,607) and under construction (13,533). Additional markets with more than 15,000 rooms under contract include Dallas (19,312), Orlando (16,368), Houston (16,266) and Los Angeles/Long Beach (15,023). 
In terms of rooms under construction, the markets exceeding 5,000 rooms also include Dallas (7,047), Nashville (5,497) and Las Vegas (5,125). Rounding out the top 10 are Los Angeles/Long Beach (4,860), Houston (4,494), Boston (4,310), Seattle (4,228), Denver (4,091) and Washington, D.C./Md./Va. (3,973).
"The impact of new supply coming online is already visible in occupancy rates among the major markets," Bowers said. "Demand in those markets continues to grow at a healthy clip as well, but not enough to lift hotelier pricing confidence."