STR Reports 6.7 Percent June Decline in U.S. Hotel Pipeline
The total active U.S. hotel development pipeline comprises 2,741 projects totaling 296,333 rooms, according to the June 2012 STR/McGraw Hill Construction Dodge Pipeline Report, which reported April gains for the U.S. hotel industry.
The June results represent a 6.7 percent decrease in the number of rooms in the total active pipeline compared to June 2011. The total active pipeline data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Pre-Planning stage. Among the Chain Scale segments, the Luxury segment reported the largest increase in rooms in the total active pipeline, up 54.4 percent to 6,358 rooms. The Economy segment was the only other segment to report an increase in rooms in the total active pipeline, up 21.5 percent to 4,223 rooms.
The Upper Upscale segment experienced the largest decrease in rooms in the total active pipeline, falling 23.6 percent to 17,181 rooms. Five of the seven Chain Scale segments reported increases in the number of rooms in the In Construction phase. The Upscale segment reported an increase of 52.9 percent in rooms under construction with 18,692 rooms, followed by the Economy segment (up 40.8 percent to 1,191 rooms) and the Luxury segment (up 30.5 percent with 1,070 rooms). The Midscale segment (down 25.9 percent with 2,498 rooms) ended the month with the largest decrease in rooms under construction.