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WHAT'S THE BUZZ IN HOSPITALITY?

Markets to Watch: Rapid Expansion in Global Hotel Construction

Dec 14, 2018

Many major cities around the world have seen economic growth to justify lodging investments, and this growth is moving into secondary markets as well. One provider of global hotel intelligence, Lodging Econometrics, recently reported that five U.S. markets have the largest hotel construction pipelines.

In the U.S. there is a total of 3,782 projects currently under build or slated to begin construction within the next 12 months, that is a total of 213,798 rooms. New York came in first place with 170 projects and 29,630 rooms, followed by Dallas with 157 projects and 18,954 rooms. In third place is Houston with 150 projects equaling 16,473 rooms. Los Angeles came in at fourth place with 141 projects and 24,129 rooms. And in fifth place is Nashville with 115 hotel construction projects/15,179 rooms in its pipeline.

At a global scale, China is also leading the pack with 2,481 new hotel construction projects. Following the U.S. and China are Indonesia with 394, Germany and United Kingdom are both tied with 246 each. In terms of cities with the largest pipeline counts, Dubai has 161 projects underway followed closely by Shanghai with 159 new construction projects.

According to the report, new hotel openings will continue to rise through 2020. These statistics stand as strong indicators of continued economic growth and bring more lodging options to guests in these high-demand markets. While these cities boast high occupancy rates, existing hotels in these markets will soon face increased competition from the new developments. And the overall hospitality market will see a spike in demand for things like labor and technology, increasing in conjunction with the needs of these new hotel openings.

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