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EMEA, US and Central/South America hotel pipeline for August 2017

LONDON – STR’s August 2017 Pipeline Report shows 177,755 rooms in 1,160 hotel projects Under Contract in Europe. The total represents an 18.1% increase in rooms Under Contract compared with August 2016.

Under Contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Unconfirmed stage.

Europe reported 75,755 rooms in 488 projects In Construction for the month. Based on number of rooms, that is a 17.5% increase in year-over-year comparisons.

Four countries in Europe reported more than 5,000 rooms In Construction:

  • United Kingdom (16,276 rooms in 131 projects)
  • Germany (13,499 rooms in 69 projects)
  • Russia (8,350 rooms in 44 projects)
  • Turkey (7,172 rooms in 42 projects)

Middle East and Africa hotel pipeline
STR’s August 2017 Pipeline Report shows 164,898 rooms in 583 hotel projects Under Contract in the Middle East and 57,011 rooms in 308 projects Under Contract in Africa.

Under Contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Unconfirmed stage.

The Under Contract total in the Middle East represents a 5.4% increase in rooms Under Contract compared with August 2016. Specifically in the In Construction phase, the Middle East reported 98,027 rooms in 309 hotels. Based on number of rooms, that is a 17.2% increase in year-over-year comparisons.

The Under Contract total in Africa represents a 0.3% increase in rooms Under Contract compared with August 2016. Specifically in the In Construction phase, Africa reported 28,260 rooms in 160 hotels. Based on number of rooms, that is a 5.6% decrease in year-over-year comparisons.

Five countries in the Middle East/Africa region reported more than 4,000 rooms In Construction:

  • Saudi Arabia (40,020 rooms in 89 projects)
  • United Arab Emirates (35,050 rooms in 121 projects)
  • Qatar (9,627 rooms in 41 projects)
  • Angola (4,451 rooms in 32 projects)
  • Egypt (4,169 rooms in 12 projects)

U.S. hotel pipeline
STR’s August 2017 Pipeline Report shows 590,080 rooms in 4,911 hotel projects Under Contract in the United States. The total represents an 8.8% increase in the number of rooms Under Contract compared with August 2016.

Under Contract data includes projects in the In Construction, Final Planning and Planning stages, but does not include projects in the Unconfirmed stage.

In the In Construction stage, the U.S. reported 192,132 rooms in 1,463 projects. Based on the number of rooms, that is a 12.9% increase in year-over-year comparisons.

“In Construction and Final Planning activity was up a bit from the previous month, but we did see a drop in the Planning phase,” said Bobby Bowers, STR’s senior VP of operations. “Year over year, however, we’re under 13% growth for rooms in construction and now under 10% growth for the total pipeline. Those numbers are incredibly low compared with the same time last year, and there is potential for further deceleration in new development as resources are directed to rebuilding from Hurricane Harvey and Hurricane Irma.”

Looking at construction activity among the Chain Scale segments, Upper Midscale (63,021 rooms in 619 hotels) accounted for the most rooms In Construction followed by Upscale (61,258 rooms in 448 hotels).

“The Upper Midscale and Upscale segments remain the most popular across the three phases of Under Contract,” Bowers said. “Those are also two chain scale segments that saw occupancy declines and the lowest rate growth through the first seven months of the year. Demand remains high in the select-service segment, but significant supply growth will continue to pressure performance levels.”

Despite representing the lowest number of rooms in the pipeline, the Economy segment reported the largest year-over-year percentage increase for rooms In Construction (+68.6% to 2,498 rooms).

U.S. pipeline by Chain Scale segment (number of rooms % change, August 2017 vs. August 2016)

Chain Scale In Construction % Change Under Contract % Change
Luxury 8,928 +46.4% 14,944 +24.9%
Upper Upscale 26,391 +27.3% 58,099 +19.3%
Upscale 61,258 +6.0% 163,478 +5.9%
Upper Midscale 63,021 +14.0% 193,239 +6.9%
Midscale 9,881 +47.4% 59,205 +44.8%
Economy 2,498 +68.6% 11,400 +28.9%
Unaffiliated 20,155 -8.9% 89,715 -7.4%
Total 192,132 +12.9% 590,080 +8.8%

Source: STR / report as of August 2017, activity reported through July 2016

Central/South America hotel pipeline
STR’s August 2017 Pipeline Report shows 59,294 rooms in 378 hotel projects Under Contract in the Central/South America region. The total represents a 6.9% decrease in rooms Under Contract compared with August 2016.

Under Contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Unconfirmed stage.

The Central/South America region reported 27,532 rooms in 171 projects In Construction for the month. Based on number of rooms, that is a 0.9% decrease in year-over-year comparisons.

Five countries in the region reported more than 1,000 rooms In Construction:

  • Brazil (14,424 rooms in 84 projects)
  • Colombia (4,441 rooms in 27 projects)
  • Chile (2,142 rooms in 13 projects)
  • Argentina (1,437 rooms in 12 projects)
  • Peru (1,094 rooms in 7 projects)

Caribbean/Mexico hotel pipeline
STR’s August 2017 Pipeline Report shows 41,116 rooms in 234 hotel projects Under Contract in the Caribbean/Mexico region. The total represents a 47.1% increase in rooms Under Contract compared with August 2016.

Under Contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Unconfirmed stage.

The Caribbean/Mexico region reported 16,297 rooms in 92 projects In Construction for the month. Based on number of rooms, that is a 24.4% increase in year-over-year comparisons.

Three countries in the region reported more than 1,000 rooms In Construction:

  • Mexico (11,056 rooms in 67 projects)
  • Cuba (1,374 rooms in three projects)
  • Dominican Republic (1,212 rooms in five projects)

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