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

LONDON – STR’s September 2017 Pipeline Report shows 170,199 rooms in 1,103 hotel projects Under Contract in Europe. The total represents an 11.5% increase in rooms Under Contract compared with September 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 73,675 rooms in 471 projects In Construction for the month. Based on number of rooms, that is a 16.3% increase in year-over-year comparisons.

Among Chain Scale segments, the Upper Midscale segment accounted for the largest portion of rooms Under Contract (28.2% with 47,948 rooms). The Upscale segment represented the largest portion of rooms In Construction (25.9% with 19,112 rooms).

Europe pipeline by Chain Scale segment (number of rooms % change, September 2017 vs. September 2016)

Chain Scale In Construction % Change Under Contract % Change
Luxury 4,733 +1.2% 8,435 +7.6%
Upper Upscale 15,519 +37.7% 28,987 +19.2%
Upscale 19,112 +24.7% 38,160 +17.9%
Upper Midscale 16,175 +11.8% 47,948 +14.0%
Midscale 3,618 +12.9% 11,975 +46.3%
Economy 6,846 -26.8% 14,805 -15.6%
Unaffiliated 7,672 +52.7% 19,889 -2.4
Total 73,675 +16.3% 170,199 +11.5%

Middle East and Africa hotel pipeline
STR’s September 2017 Pipeline Report shows 164,497 rooms in 574 hotel projects Under Contract in the Middle East and 55,349 rooms in 299 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 3.4% increase in rooms Under Contract compared with September 2016. Specifically in the In Construction phase, the Middle East reported 96,694 rooms in 302 projects. Based on number of rooms, that is a 15.9% increase in year-over-year comparisons.

Middle East pipeline by Chain Scale (number of rooms)

Chain Scale In Construction Under Contract
Luxury 13,072 23,612
Upper Upscale 26,363 42,606
Upscale 17,005 38,705
Upper Midscale 10,549 18,962
Midscale 4,835 11,098
Economy
Unaffiliated 24,870 29,514
Total 96,694 164,497

Source: STR / report as of September 2017, activity reported through August 2017. Under Contract data includes those projects in the In Construction, Final Planning and Planning stages

The Under Contract total in Africa represents a 2.7% decrease in rooms Under Contract compared with September 2016. In the In Construction phase, Africa reported 27,096 rooms in 152 hotels. Based on number of rooms, that is a 6.6% decrease in year-over-year comparisons.

Africa pipeline by Chain Scale (number of rooms)

Chain Scale In Construction Under Contract
Luxury 3,130 7,291
Upper Upscale 10,923 22,061
Upscale 6,887 13,937
Upper Midscale 1,726 4,312
Midscale 3,733 5,697
Economy
Unaffiliated 697 2,051
Total 27,096 55,349

Source: STR / report as of September 2017, activity reported through August 2017. Under Contract data includes those projects in the In Construction, Final Planning and Planning stages

U.S. hotel pipeline
STR’s September 2017 Pipeline Report shows 585,248 rooms in 4,886 hotel projects Under Contract in the United States. The total represents a 6.6% increase in the number of rooms Under Contract compared with September 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 188,479 rooms in 1,440 projects. Based on the number of rooms, that is a 5.7% increase in year-over-year comparisons.

“The overall room construction total was down from last month, but outside of Houston, there wasn’t a noticeable decline in activity around hurricane-affected markets,” said Bobby Bowers, STR’s senior VP of operations. “There is still potential for that to change in next month’s reporting if damage to existing sites and increased material costs continue to remain a challenge. Regardless, construction activity and the total pipeline remains up year over year – just at a lot lower rate of growth compared with 2016.”

Among the Top 26 Markets, New York, New York, reported the most rooms Under Contract (25,607 rooms) and most rooms In Construction (13,533 rooms).

Four additional markets each reported more than 15,000 rooms Under Contract for the month: Dallas, Texas (19,312 rooms); Orlando, Florida (16,368 rooms); Houston, Texas (16,266 rooms); and Los Angeles/Long Beach, California (15,023 rooms).

After New York, three other markets reported more than 5,000 rooms In Construction: Dallas (7,047 rooms); Nashville, Tennessee (5,497 rooms); and Las Vegas, Nevada (5,125 rooms).

“The impact of new supply coming online is already visible in occupancy rates among the major markets,” Bowers said. “Demand in those markets continues to grow at a healthy clip as well, but not enough to lift hotelier pricing confidence.”

U.S. Markets (ranked by In Construction phase)

Market In Construction
September 2017
In Construction
September 2016
In Construction
YOY % change
New York, NY 13,533 16,462 -17.8%
Dallas, TX 7,047 5,567 +26.6%
Nashville, TN 5,497 3,549 +54.9%
Las Vegas, NV 5,125 3,859 +32.8%
Los Angeles/Long Beach, CA 4,860 5,921 -17.9%
Houston, TX 4,494 5,305 -15.3%
Boston, MA 4,310 2,292 +88.0%
Seattle, WA 4,228 4,955 -14.7%
Denver, CO 4,091 4,470 -8.5%
Washington, DC-MD-VA 3,973 3,137 +26.6%

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

Central/South America hotel pipeline
STR’s September 2017 Pipeline Report shows 58,410 rooms in 374 hotel projects Under Contract in the Central/South America region. The total represents an 8.4% decrease in rooms Under Contract compared with September 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 25,869 rooms in 162 projects In Construction for the month. Based on number of rooms, that is a 5.5% decrease in year-over-year comparisons.

Among Chain Scale segments, the Upper Upscale segment accounted for the largest portion of rooms Under Contract (23.7% with 13,826 rooms).

Upscale accounted for the largest portion of rooms In Construction (26.3% with 6,803 rooms).

Central/South America pipeline by Chain Scale segment (number of rooms % change, September 2017 vs. September 2016)

Chain Scale In Construction % Change Under Contract % Change
Luxury 2,259 -19.5% 3,836 -5.2%
Upper Upscale 5,598 +19.8% 13,826 +15.9%
Upscale 6,803 +12.0% 12,508 -3.6%
Upper Midscale 3,431 -32.4% 9,378 -27.3%
Midscale 4,748 -4.7% 10,890 -14.6%
Economy 2,386 +2.6% 6,570 -5.4%
Unaffiliated 644 -54.7% 1,402 -36.3%
Total 25,869 -5.5% 58,410 -8.4%

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

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