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U.S. HOTEL CONSTRUCTION declined for the seventh consecutive month in June, according to STR. Rooms in construction in New York City and Nashville represent a significant percentage of existing supply in those markets. Though at a slower pace, planning activity increases across the U.S. and developers are showing interest in Miami, Nashville and Phoenix, the report said. According to STR, there are 146,198 rooms under construction in the U.S. in June, down 20.1 percent when compared to same period last year. As many as 178,809 rooms are at final planning during the month, decreased 11.3 percent from last year and 281,190 rooms are at planning phase, an increase of 6.1 percent from June 2021. "The U.S. hotel pipeline continues to decelerate as we enter the second half of the year," said Carter Wilson, senior vice president of consulting, STR. "The continued increases in debt costs combined with the ongoing supply chain disruptions will likely delay projects from breaking ground this year, which will lead to a further decline in rooms in construction. On a national basis, new supply will not be a significant headwind for the future." New York leads the major markets in rooms in construction at 13,568 rooms in June, up 10.8 percent compared to last year, followed by Nashville with 3,939 rooms, up 7 percent, Phoenix with 4,388 rooms, an increase of 6.3 percent over last year, Atlanta with 5,991 rooms, up 5.5 percent and Detroit with 2,382 rooms, an increase of 5.1 percent over June 2021.

DALLAS LEADS THE U.S. hotel construction pipeline for the fourth consecutive quarter, according to Lodging Econometrics. Among brands, Marriott International led the pipeline. Dallas had a record 173 projects with 20,707 rooms in the second quarter of this year, followed by Atlanta with 140 projects containing 18,131 rooms, Los Angeles with 124 projects with 20,365 rooms, New York, with 113 projects with 19,238 rooms and Phoenix with 108 projects containing 14,964 rooms, Marriott had 1,355 projects with 167,034 rooms, up 4 percent by projects year-over-year, tops the pipeline during the period. The Q2 2022 U.S. Construction Pipeline Trend Report said that major markets and popular tourist destinations in the U.S. reported highest occupancy rates since the pandemic began in early 2020 in the second quarter mainly due to robust leisure travel, group, and international travel. New York City with 78 projects with 13,063 rooms, Atlanta with 25 projects containing 3,905 rooms, Dallas with 25 projects with 3,725 rooms, Phoenix with 23 projects with 4,955 rooms and Los Angeles with 22 projects with 3,606 rooms are the top five markets with the most projects under construction during the end of June. They account for 22 percent of rooms under construction in the U.S.

U.S. EXTENDED-STAY HOTELS room supply increased by 3.2 percent in May, slightly above the average monthly rise over the past two years, according to The Highland Group. May marked the 32nd consecutive month with supply growth at 4 percent or less, and the annual supply increase has been under 2 percent for two years. However, both metrics remain well below the long-term average. The 12.8 percent increase in economy extended-stay supply, along with smaller gains in mid-price and upscale segments, is primarily due to conversions, the report said. New construction in the economy segment accounts for only about 3 percent of rooms opened compared to a year ago.

U.S. HOTEL PERFORMANCE improved in the second week of June compared to the previous week, showing mixed year-over-year results, according to CoStar. All key metrics, including occupancy, RevPAR and ADR, increased compared to the prior week. Occupancy rose to 70.3 percent for the week ending June 15, up from 69.1 percent the previous week, despite a slight 0.6 percent year-over-year decrease. ADR increased to $161.70 from $160.90, a 0.9 percent rise compared to last year. RevPAR increased to $113.62 from $111.26 the previous week, marking a 0.3 percent increase compared to the same period in 2023. Among the top 25 markets, San Francisco recorded the highest year-over-year increases: occupancy rose 14.8 percent to 71.1 percent, ADR increased 11.3 percent to $226.70, and RevPAR grew 30.3 percent to $179.97. The market's performance was boosted by the Data + AI Summit.

U.S. HOTEL PERFORMANCE improved in the third week of May compared to the previous week, with positive year-over-year comparisons, according to CoStar. Key metrics, including occupancy, RevPAR, and ADR, all saw week-over-week increases. Occupancy increased to 67.4 percent for the week ending May 18, up from 66.1 percent the previous week, marking a 0.2 percent year-over-year rise. ADR rose to $163.11 from $162.14, reflecting a 2.6 percent jump compared to last year. RevPAR reached $109.93, up from $107.24 the prior week, showing a 2.8 percent increase compared to the same period in 2023. Among the top 25 markets, Houston experienced the only double-digit occupancy increase, rising 10.5 percent to 67.9 percent. Atlanta reported the highest year-over-year increases in ADR, rising by 10 percent to $137.30, while RevPAR increased by 18 percent to $98.86.

NOBLE INVESTMENT GROUP in Atlanta has acquired the Hilton Garden Inn Boise Downtown. The transaction caps more than $1 billion investment over the past year, according to a statement. The 132-room hotel is near the city's leisure and business centers, which includes the Idaho State Capitol, Boise State University, Jack's Urban Meeting Place, Idaho Central Arena, and the Boise Centre, according to Noble, which is led by Mit Shah as CEO. Hotel amenities include an indoor pool, 4,098 square feet of meeting space and it is pet friendly. "The Boise market demonstrates the key macro trends we are looking for in cities which we believe will outperform as we enter a new lodging cycle," said Dustin Fisher, Noble's senior vice president. "This acquisition aligns with our strategy to acquire high-quality, well-located assets in growth markets poised to benefit from the ongoing recovery in travel."

THE U.S. HOTEL construction pipeline was slightly up at the end of the first quarter of 2022, according to Lodging Econometrics. Dallas was the top U.S. market for building. The pipeline stood at 5,090 projects containing 606,302 rooms, up 2 percent by projects, but down 3 percent by rooms, during the period. There are 961 projects with 128,784 rooms currently under construction in the first quarter, down 27 percent by projects and 28 percent by rooms compared to 2021, stated the latest trend report by LE. There are 1,911 projects with 223,030 rooms are scheduled to start in the next 12 months, up 2 percent by projects and 3 percent by rooms. Projects and rooms in early planning reached a record high in the first quarter, with 2,218 projects containing 254,488 rooms, up 24 percent by projects and 12 percent by rooms, compared to a year ago.

MARKING 50 YEARS in the hotel business, Red Roof held its annual brand conference at the Broadmoor Resort in Colorado Springs, Colorado, Nov. 11 to 13. During the conference, the company announced a new partnership with software company HotelKey to install a multi-functional, cloud-based system in its more than 675 properties nationwide. Other news from the conference included details of the company's financial position, which George Limbert, Red Roof president, said is strong. Company officials also discussed Red Roof's new dual brand development prototype, other partnerships and the latest charity efforts of the company's Purpose With Heart. "Red Roof delivered record revenue which is a testament to our resilience and ability to anticipate market trends," Limbert said. "Our financial position is strong, travelers are back and our owners and operators are exceeding performance expectations."