Whereas U.S. resort development has declined for seven consecutive months, rooms in development in each New York Metropolis and Nashville characterize a major share of these markets’ current provide. Moreover, planning exercise continues to rise nationally, albeit at a slower tempo, with markets reminiscent of Miami, Nashville and Phoenix displaying elevated curiosity from builders, in response to STR.
U.S. Lodge Pipeline
June 2022 (share change compared with June 2021):
- In Building: 149,198 rooms (-20.1%)
- Closing Planning: 178,809 rooms (-11.3%)
- Planning: 281,190 rooms (+6.1%)
“The U.S. resort pipeline continues to decelerate as we enter the second half of the yr,” mentioned Carter Wilson, STR’s SVP of consulting. “The continued will increase in debt prices mixed with the continued provide chain disruptions will doubtless delay tasks from breaking floor this yr, which can result in an extra decline in rooms in development. On a nationwide foundation, new provide won’t be a major headwind for the foreseeable future.”
New York Metropolis leads the key markets in rooms in development as a share of current provide.
1. New York (10.8%, 13,568 rooms)
2. Nashville (7.0%, 3,939 rooms)
3. Phoenix (6.3%, 4,388 rooms)
4. Atlanta (5.5%, 5,991 rooms)
5. Detroit (5.1%, 2,382 rooms)
When wanting on the planning part of the pipeline, Miami exhibits the best variety of rooms as a share of current provide.
1. Miami (15.8%, 10,177 rooms)
2. Nashville (11.2%, 6,295 rooms)
3. Phoenix (10.1%, 6,990 rooms)
4. Los Angeles (8.3%, 9,414 rooms)
“The nationwide slowing within the pipeline doesn’t translate to all markets equally,” mentioned Wilson. “Sure markets which have seen sustained demand are nonetheless very enticing to builders and the corresponding pipeline numbers show that time. New York Metropolis continues to be on the high of the checklist with roughly 14,000 rooms in development, whereas markets reminiscent of Nashville are experiencing a big improve in luxurious accommodations. And even markets the place the restoration is uneven, reminiscent of in San Francisco or Chicago, builders are discovering submarkets that they hope can assist new rooms.”
STR supplies premium information benchmarking, analytics and market insights for the worldwide hospitality business. Based in 1985, STR maintains a presence in 15 international locations with a company North American headquarters in Hendersonville, Tennessee, a world headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the main supplier of economic actual property data, analytics and on-line marketplaces. For extra data, please go to str.com and costargroup.com.