Hotel construction down to record lows

Jan.January 25, 2010 01:52 PM

Hotel construction is at a relative-standstill as lenders continue to tighten their belts to ward off further commercial real estate losses, according to a revised 2010 forecast from Lodging Econometrics. The research firm now predicts the opening of just 717 hotels with 82,620 rooms this year, 56 percent fewer than in 2009. In October, Lodging Econometrics had predicted 988 new hotel openings for 2010, but “the near-disappearance of lending” has led to a historically high number of project cancellations and postponements. In the fourth quarter of 2009, there were 767 hotel projects under construction — the lowest level in more than four years — and that number is expected to fall further still. Meanwhile, construction starts totaled 119 projects during the quarter, the lowest since the beginning of 2002. Though the drop-off in new hotel developments is bad news for the construction industry, hotel owners may breathe a sigh of relief as there will be fewer rooms than previously expected to absorb the increase in business and leisure travel. Smith Travel Research recently reported that close to 100 new hotels are slated to open in major U.S. cities this year. Other new additions to the market include Marriott’s new Singer Island timeshare, Oceana Palms — the Palm Beaches, which debuted earlier this month. TRD

Related Articles

William Dabbs

Contractor guilty of manslaughter in fatal shooting of his boss

Clockwise from left: AC Hotel Midtown Miami, E11even and the Gabriel Miami (Credit: iStock, Wikipedia)

$1K a night, easy: South Florida hotels score high rates for Super Bowl LIV

Rendering of Missoni Baia with a concrete truck and Vlad Doronin (Credit: Getty Images and iStock)

5,800-ton concrete pour set for Missoni Baia condo tower

West Palm Beach Marriott (Credit: iStock)

Marriott family sells West Palm hotel for $50M

A conceptual rendering and Lon Tabatchnick

Margaritaville developer plans another Hollywood hotel despite opposition

One Ocean

Allegations of shoddy construction pile up at Related’s One Ocean

Miami beach (Credit: iStock)

Hurricane Dorian spared South Florida but will still cost developers and contractors

A satellite image of Hurricane Dorian (Credit: Getty Images, iStock)

As Hurricane Dorian barrels toward South Florida, developers and builders prepare