STR Global: EMEA, US, Central/South America and Caribbean/Mexico hotel pipeline for April 2015

16 mins read

There are 654 hotels totalling 150,762 rooms Under Contract in the Middle East/Africa region, according to the April 2015 STR Global Construction Pipeline Report. This represents a 9.4-percent increase in rooms Under Contract compared with April 2014 and a 21.6-percent year-over-year increase in rooms under construction. The Under Contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Unconfirmed stage.

The region reported 78,824 rooms in 332 hotels under construction for the month.

Among the Chain Scale segments, the Upper Upscale segment accounted for the largest portion of rooms in the Under Contract stage, 34.6 percent with 52,234 rooms. Two other segments each accounted for more than 15.0 percent of rooms Under Contract: Upscale (21.8 percent with 32,877 rooms) and Luxury (18.8 percent with 28,300 rooms).

The Upper Upscale segment made up the largest portion of rooms under construction, 38.0 percent with 29,915 rooms. Two other segments each accounted for more than 20.0 percent of rooms In Construction: Luxury (21.1 percent with 16,642 rooms) and Upscale (20.3 percent with 15,985 rooms).

Europe hotel pipeline for April 2015
There are 857 hotels totalling 138,152 rooms Under Contract in Europe. This represents a 6.4-percent decrease in rooms Under Contract compared with April 2014 and a 3.6-percent year-over-year decrease in rooms under construction. The Under Contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Unconfirmed stage.

The region reported 58,372 rooms in 360 hotels under construction for the month.

Among the region’s key markets, Istanbul, Turkey, reported the most rooms under construction with 4,902 rooms in 24 hotels. Three other markets reported more than 3,000 rooms under construction: Greater London, England (4,440 rooms in 26 hotels); Moscow, Russia (3,103 rooms in 13 hotels); and Greater Amsterdam, Netherlands (3,026 rooms in 11 hotels).

US hotel pipeline
There are 3,671 projects totaling 441,559 rooms Under Contract in the United States. This represents a 15.2-percent increase in the number of rooms Under Contract compared with April 2014 and a 21.4-percent year-over-year increase in rooms under construction. The Under Contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Unconfirmed stage.

Among the Chain Scale segments, the Upper Upscale segment reported the largest year-over-year increase in rooms Under Contract, rising 38.2 percent to 34,904 rooms. The Upscale segment followed with a 27.7-percent increase to 131,158 rooms.

The Unaffiliated segment (-10.5 percent to 96,232 rooms) reported the largest decrease in the number of rooms Under Contract.

All segments but Economy (-27.1 percent to 655 rooms) reported an increase in rooms under construction, and four of those segments reported an increase of more than 15.0 percent. The Upper Upscale segment reported the largest year-over-year increase, rising 62.9 percent to 14,058 rooms.

“Upscale and Upper Midscale brands once again dominated the U.S. room construction numbers in April, accounting for about 84,000 rooms, or two-thirds of total U.S. construction activity,” said Bobby Bowers, STR’s senior VP for operations. “STR currently expects full-year 2015 U.S. net room supply growth of 1.3 percent.”

Central/South America hotel pipeline
There are 440 hotels totalling 69,548 rooms Under Contract in the Central/South America region. This represents a 9.3-percent increase in rooms Under Contract compared with April 2014 and a 24.5-percent year-over-year increase in rooms under construction. The Under Contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Unconfirmed stage.

The region reported 29,806 rooms in 182 hotels under construction for the month.

Among the Chain Scale segments, four segments each accounted for more than 15.0 percent of rooms Under Contract: Upscale Midscale (21.5 percent with 14,963 rooms); Upscale (21.2 percent with 14,770 rooms); Midscale (19.2 percent with 13,365 rooms); and Upper Upscale (17.7 percent with 12,277 rooms).

Four segments also accounted for more than 15.0 percent of rooms In Construction: Upscale segment (29.0 percent with 8,636 rooms); Midscale (18.9 percent with 5,620 rooms); Upper Midscale (18.1 percent with 5,401 rooms); and Upper Upscale (15.1 percent with 4,492 rooms).

The Unaffiliated segment accounted for the smallest portion of rooms Under Contract (4.6 percent with 3,205 rooms) and In Construction (2.5 percent with 733 rooms).

STR reports Caribbean/Mexico hotel pipeline
There are 171 hotels totaling 29,846 rooms Under Contract in the Caribbean/Mexico region. This represents an 11.4-percent increase in rooms Under Contract compared with April 2014 and a 1.3-percent year-over-year increase in rooms under construction. The Under Contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Unconfirmed stage.

The region reported 11,721 rooms in 64 hotels under construction for the month.

Among the Chain Scale segments, four segments each accounted for 15.0 percent or more of rooms Under Contract: Upscale (23.1 percent with 6,901 rooms); Luxury (22.1 percent with 6,586 rooms); Upper Midscale (16.7 percent with 4,977 rooms); and Upper Upscale (15.0 percent with 4,475 rooms).

The Luxury segment accounted for the largest portion of rooms In Construction at 36.2 percent with 4,240 rooms. Two other segments each accounted for more than 15.0 percent of rooms In Construction: Upper Midscale (17.9 percent with 2,102 rooms) and Upscale (17.1 percent with 2,008 rooms).

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