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U.S. Hotel Construction Up in 2016

Wednesday, January 13, 2016

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A recent report indicates that U.S. business travelers could have thousands of new choices in places to stay by the end of this year.

At least 865 hotels, with 103,230 rooms, are under construction and plan to open in 2016, according to hotel research firm STR.

The report was made available Monday (Jan. 11) to USA Today.

“Post-2009, lenders in the hotel space got very skittish,’’ Jan Freitag, STR’s senior vice president of  lodging insights, told the national newspaper.

Today, he said, “the industry continues to break records on the demand side and on the revenue side. Developers are playing catch up, and we’re seeing a lot of attention on the U.S. lodging industry.’’

Better, but Still Sluggish

The 1.5 percent increase in rooms opening this year is still below the long-term annual average of 1.9 percent, Freitag said. But building activity has increased, with 21 percent more rooms under construction than a year ago.

Some of the most active hotel construction sites can be found in expected major hub cities such as Chicago and Washington, D.C. But unexpected metro areas, such as Detroit—which has 954 rooms scheduled to open in 2016 and 4,200 rooms planned long-term—are seeing growth.

©iStock.com / Arpad Benedek

At least 865 hotels, with 103,230 rooms, are under construction and plan to open in 2016, according to hotel research firm STR.

“Developers are looking at Detroit and saying there might be an opportunity there with a very changed city,’’ Freitag said.

New York topped the list with 13,583 rooms under construction. Not all of those rooms will open in 2016, the newspaper said.

“That is an unbelievable amount of rooms under construction,’’ Freitag said. “If brands want to establish themselves…(they) need to have a foothold in New York City.’’

Types of Rooms

Marriott International will open several new rooms in New York this year, according to the company’s chief operating officer of its North America, Select Service and Extended Stay Brands, Eric Jacobs. Collectively, the brand will open more than 360 hotels in the U.S. and Canada this year this year.

That's “a record number of openings,’’ Jacobs said.

Hyatt expects this year to open at least 11 new Hyatt Place, Hyatt House, and Hyatt Regency hotels in and around such locations as Houston; Chicago; Denver; Emeryville, CA; and Asheville, NC, as well as an Andaz in Scottsdale, AR, spokeswoman Stephanie Sheppard said

Another luxury brand, Hilton Worldwide, will have more than 30,000 new rooms, or 270 hotels, in the U.S. this year, the paper reported.

Even with the addition of the more full-service destinations, limited service hotels are the most popular type of property being built.


Tagged categories: Business conditions; Business management; Business matters; Business operations; Commercial / Architectural; Commercial Buildings; Commercial Construction; Construction; Hotels

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