Hotel construction starts reach record low

Source: Lodging Econometrics. Click the image for a larger version.

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starts for U.S. hotels reached a record low of 80 projects with 8,566
rooms in the second quarter while the total number of hotel projects in
the construction pipeline saw a 2 percent quarter-over-quarter decline,
according to a new report from Lodging Econometrics. Because financing
for hotel developers continues to hinder progress, the construction
pipeline, which had 553 projects with 67,641 rooms in the second
quarter, is expected to continue its decline until leveling off in
2011, the report says. Cancellations and postponements of projects,
meanwhile, appear to have already peaked since fewer speculative
projects remain in the pipeline. Last quarter, cancellations fell to
197 projects with 24,540 rooms. A total of 671 new hotels with
64,938 rooms are projected to open in the U.S. in 2012, Lodging
Econometrics said. This year will see 705 new hotels with 79,701 rooms
by its end, and 2011 is expected to bring another 673 hotels with
64,959 rooms, according to the forecast. TRD