Hotel construction down to record lows

Miami /
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

arrow_forward_ios
Two Roads Development's Taylor Collins (Getty, Two Roads Development)
Two Roads’ Taylor Collins on slowdown, rising interest rates
Two Roads’ Taylor Collins on slowdown, rising interest rates
PMG's Dan Kaplan, Ryan Shear and Kevin Maloney with rendering of Waldorf Astoria tower in Miami (PMG, ArX Solutions)
What it takes to develop a Miami supertall
What it takes to develop a Miami supertall
Trump Group's Jules Trump and Suffolk Construction's John Fish with the Estates at Acqualina (Getty, Suffolk Construction, Google Maps)
Suffolk again sues Estates at Acqualina developer in alleged “Halloween ambush”
Suffolk again sues Estates at Acqualina developer in alleged “Halloween ambush”
Renderings of the project with developer Rishi Kapoor (Location Ventures)
Rishi Kapoor launches Edition Residences in Fort Lauderdale
Rishi Kapoor launches Edition Residences in Fort Lauderdale
Ocean Land's Jean Francois Roy with rendering of Sixth & Rio (Ocean Land Investments)
Fort Lauderdale developer launches condo project planned as rentals
Fort Lauderdale developer launches condo project planned as rentals
(Photo Illustration by The Real Deal with Getty Images)
After Ian: South Florida’s construction costs, insurance to rise
After Ian: South Florida’s construction costs, insurance to rise
(The Real Deal illustration with Getty Images)
As Hurricane Ian approaches, builders secure Florida sites
As Hurricane Ian approaches, builders secure Florida sites
Reid J. Boren, James W. Harpel, Taylor Collins, and Brad Meltzer (Two Roads Development)
Two Roads hires Plaza Construction’s Brad Meltzer
Two Roads hires Plaza Construction’s Brad Meltzer
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...