Hotel pipeline decline continues

The hotel construction pipeline in the U.S. stood at 5,358 total projects, which include 686,516 rooms, at the end of 2008, according to a report released today by Lodging Econometrics. The number of projects declined 9 percent between the second quarter, which the report calls the most recent “cyclical peak,” and the fourth quarter of 2008. The number of rooms in the pipeline fell 13 percent. The decline in the pipeline is likely to continue through 2010, the report said. But the number of new hotel openings in the fourth quarter was higher than expected, with 367 hotels opening. Developers are also completing more projects on or ahead of schedule, due to lower costs for building materials and the increasing availability of construction crews, the report said. TRD