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Lodging Econometrics' newest report indicates that hotel construction continues to decline. The total global construction pipeline has decreased 16 percent and 17 percent respectively to 9,108 projects/1,502,497 rooms at the end of Q1 2009. The pipeline reached its peak of 10,781 projects/1,819,486 rooms in Q2 2008. The U.S. pipeline—which represents 54 percent of the world's hotel projects—has fallen 16 percent by projects and 21 percent by rooms. Meanwhile, as the second largest pipeline worldwide, Asia Pacific is down 18 percent by projects and 16 percent by rooms.
LE's report also shows that close to 80 percent of the world's projects are 200 rooms or fewer. More than a third of the pipeline projects are in the midscale without F&B segment, and another 26 percent are upscale. Construction starts (656 projects/98,574 rooms) and new project announcements (885 projects/130,334 rooms) continue to trend downward. Cancellations/postponements rose for a fifth consecutive quarter to a total of 975 projects/158,873 rooms in Q1 2009. Latin America, EMEA, and Asia Pacific are experiencing the most problems in this category, with 33 percent to 48 percent of hotel projects stalled or canceled. In addition, LE forecasts that new hotel openings will top out late next year. In Q1 2009, 542 new hotels representing 74,171 rooms debuted; 2,774 hotels/398,391 rooms are expected to launch this year.
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Global Hotel Pipeline Drops 16 Percent
June 30, 2009Lodging Econometrics' newest report indicates that hotel construction continues to decline. The total global construction pipeline has decreased 16 percent and 17 percent respectively to 9,108 projects/1,502,497 rooms at the end of Q1 2009. The pipeline reached its peak of 10,781 projects/1,819,486 rooms in Q2 2008. The U.S. pipeline—which represents 54 percent of the world's hotel projects—has fallen 16 percent by projects and 21 percent by rooms. Meanwhile, as the second largest pipeline worldwide, Asia Pacific is down 18 percent by projects and 16 percent by rooms.
LE's report also shows that close to 80 percent of the world's projects are 200 rooms or fewer. More than a third of the pipeline projects are in the midscale without F&B segment, and another 26 percent are upscale. Construction starts (656 projects/98,574 rooms) and new project announcements (885 projects/130,334 rooms) continue to trend downward. Cancellations/postponements rose for a fifth consecutive quarter to a total of 975 projects/158,873 rooms in Q1 2009. Latin America, EMEA, and Asia Pacific are experiencing the most problems in this category, with 33 percent to 48 percent of hotel projects stalled or canceled. In addition, LE forecasts that new hotel openings will top out late next year. In Q1 2009, 542 new hotels representing 74,171 rooms debuted; 2,774 hotels/398,391 rooms are expected to launch this year.
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