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THE U.S. CONSTRUCTION pipeline reached a record level in the first quarter of 2024, according to Lodging Econometrics. The pipeline included 6,065 hotels with 702,990 rooms, showing a 9 percent year-over-year rise in hotels and a 7 percent increase in rooms compared to the previous year. Furthermore, each stage of the pipeline saw year-over-year growth in the first quarter. LE's Q1 2024 U.S. Hotel Construction Pipeline Trend Report showed 1,144 hotels under construction, totaling 141,336 rooms-a 9 percent rise in hotels and a 1 percent increase in rooms compared to the previous year. Hotels set to begin construction in the next 12 months total 2,259, comprising 260,968 rooms, reflecting a 10 percent increase in hotels and an 8 percent rise in rooms year over year, the report said. Both hotel and room counts in the early planning stage increased by 9 percent year over year, reaching record-high figures of 2,662 hotels and 300,686 rooms, respectively.

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 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.

THE U.S. LEADS the global full-service hotel pipeline in the first quarter of 2024 with 2,272 projects and 341,854 rooms, accounting for 41 percent of all planned or under-construction hotels worldwide, according to Lodging Econometrics. Dallas and Los Angeles are among the top five cities globally in the pipeline. The global pipeline totals 15,366 projects and 2,382,195 rooms, marking a year-over-year increase of 6 percent in projects and 3 percent in rooms. LE's Q1 2024 Global Hotel Construction Pipeline Trend Report showed a record high in global room counts and a significant rise in full-service projects by the end of the first quarter. In the first quarter, there are 6,195 projects and 1,101,602 rooms under construction worldwide, the report said. Projects set to start within the next 12 months total 3,840 projects and 528,251 rooms, an 8 percent increase in projects and a 5 percent increase in rooms year-over-year. Early planning stage projects and rooms have reached all-time highs at 5,331 projects and 752,342 rooms, rising 12 percent and 9 percent year-over-year, respectively.

NEW YORK LEADS the top 50 U.S. markets in hotel construction with 47 projects and 7,655 rooms currently underway, according to Lodging Econometrics. The city has a total of 78 projects and 13,549 rooms in its hotel construction pipeline, the 10th largest in the U.S. Projects set to start in the next 12 months include eight projects with 1,079 rooms, while early planning includes 23 projects with 4,815 rooms, according to LE's Q1 2024 Market Trend Report for New York, released before the NYU International Hospitality Industry Investment Conference. Within the New York market, the three submarkets with the largest hotel construction pipelines are the New York City area (including Brooklyn East, the Bronx, and Staten Island) with 25 projects and 2,096 rooms, the report said. Similarly, the Midtown South area features 11 projects and 2,535 rooms, while the Midtown West/Times Square area has 10 projects and 4,131 rooms. Combined, these submarkets account for 59 percent of the projects and 65 percent of the rooms in the market's total construction pipeline.

DALLAS LEADS THE top five U.S. markets in the largest construction pipeline as of the first quarter of 2024, according to Lodging Econometrics. The Dallas market has 185 projects with 21,882 rooms, slightly below the record highs at the close of the fourth quarter of 2023. Next came Atlanta, with 153 projects comprising 17,929 rooms, then Nashville with 127 projects and 16,199 rooms, as LE's U.S. Construction Pipeline Trend Report showed. Phoenix followed with 123 projects and 16,198 rooms, and the Inland Empire in Southern California set a new record high with 121 projects and 12,324 rooms. U.S. markets with the most projects already under construction by the end of the first quarter include New York with 47 projects and 7,655 rooms, Dallas with 25 projects and 3,059 rooms, and Nashville with 22 projects and 2,828 rooms. Atlanta had 21 projects and 2,588 rooms, and the Inland Empire currently has 20 projects and 2,181 rooms under construction.