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APPROXIMATELY 6,095 PROJECTS with 713,151 rooms are in the U.S. construction pipeline at the end of the second quarter, according to Lodging Econometrics. This all-time high marks a 9 percent year-over-year increase in projects and an 8 percent increase in rooms compared to the second quarter of 2023. LE's Q2 2024 U.S. Hotel Construction Pipeline Trend Report revealed 1,171 projects with 147,611 rooms under construction at the end of the second quarter, reflecting a 10 percent increase in projects and a 4 percent increase in rooms year-over-year. LE expects that as interest rates decline, projects scheduled to start in the next 12 months will quickly move to under construction. Extended-stay brands remain popular with developers, comprising 36 percent of projects under construction, 33 percent of those starting in the next 12 months and 34 percent of projects in early planning, the report said. Sixty-four percent of these projects are in the middle tier of brands.

THE AMERICAS AND Asia Pacific saw a year-over-year increase in hotel pipeline activity at the end of second quarter, according to CoStar. The U.S. leads the Americas with around 157,713 rooms under construction, while China tops the Asia Pacific with 319,012 rooms under construction. In the Americas, construction surged to around 208,718 rooms, an 8.3 percent rise from June 2023, CoStar's June 2024 data showed. Final planning had 299,153 rooms, up 6.9 percent from the previous year, while the planning phase saw 385,945 rooms, a significant 34.6 percent increase. The region had 893,816 rooms under contract, a notable 17.8 percent uptick. After the U.S., Mexico recorded about 13,301 rooms under construction, with Canada and Brazil following at 8,686 and 5,948 rooms, respectively, CoStar said.

THE TOP FIVE U.S. markets with the largest hotel construction pipelines are led by Dallas with 189 projects and a peak of 22,392 rooms in the second quarter of 2024, according to Lodging Econometrics. That is four projects shy of its end of fourth quarter 2023 record. Atlanta follows with a record 159 projects and 18,522 rooms. The Inland Empire ranks third with a record 124 projects and 12,569 rooms, while Nashville has 123 projects and 15,924 rooms and Phoenix boasts 120 projects and 15,627 rooms. LE's Q2 2024 U.S. Construction Pipeline Trend Report revealed that 10 states-Texas, California, Florida, Georgia, Tennessee, North Carolina, Arizona, New York, Alabama and Michigan-account for 60 percent of the rooms in the pipeline.