STR Reports US Hotel Pipeline for January 2011

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. February 14, 2011

February 11, 2011 - The total active U.S. hotel development pipeline comprises 2,997 projects totaling 317,157 rooms, according to the January 2011 STR/McGraw Hill Construction Dodge Pipeline Report released this week.

This represents a 16.1-percent decrease in the number of rooms in the total active pipeline compared to January 2010. The total active pipeline data includes projects in the In Construction, Final Planning and Planning stages, but does not include projects in the Pre-Planning stage.

“Development activity has been slowing down as new development dollars have been challenging to obtain. The best illustration of this is the 40-percent reduction of rooms under construction this January compared to January 2010,” said Lana Yoshii, VP of content management at STR. “When reviewing this year and prior-year activity, the Luxury and Economy segments were hardest hit, with reductions of 74 percent and 73 percent in rooms under construction, respectively. Looking at January 2011 pipeline activity, not surprisingly, the Upper Midscale (35 percent) and Upscale (24 percent) segments still firmly hold the lead with 60 percent of the share of rooms under construction in the U.S.”

Among the Chain Scale segments, the Economy segment experienced the largest decline in rooms in the total active pipeline, falling 59.8 percent to 3,668 rooms, followed by the Luxury segment (-36.0 percent to 4,115 rooms) and the Upper Upscale segment (-22.3 percent with 15,246 rooms).

Please note: STR has revised its chain-scale segments for 2011. The Midscale with Food and Beverage segment and the Midscale without Food and Beverage segment have been replaced with the Upper Midscale segment and the Midscale segment.

About STR/McGraw Hill Construction Dodge Pipeline Report:
The Pipeline Report is co-produced by McGraw Hill Construction Dodge, and the dedicated pipeline team at STR. Available as an annual subscription or a local Market Supply Report, the Pipeline Report is a comprehensive look at new hotel development and existing supply in the U.S. and Canada.

About STR
STR provides clients—including hotel operators, developers, financiers, analysts and suppliers to the hotel industry—access to hotel research with regular and custom reports covering North America, Mexico and Caribbean. STR provides a single source of global hotel data covering daily and monthly performance data, forecasts, annual profitability, pipeline and census information. STR founded the STR family of companies and is proudly associated with STR Global, RRC Associates, STR Analytics, and HotelNewsNow.com. For more information, please visit www.str.com.