News
Opal Hospitality expands to U.S., acquires Four Points by Sheraton Charlotte‑Lake Norman, N.C.
Opal Hospitality has expanded into the U.S. market with acquisition of Four Points by Sheraton Charlotte-Lake Norman, Huntersville, N.C.
Intelligence
U.S. hotel construction pipeline surpasses 6,200 projects, Q3 2024
According to the Q3 2024 U.S. Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE), the total U.S. pipeline stands at 6,211 projects/722,821 rooms—up 9 per cent by projects and 7 per cent by rooms year-over-year (YOY).
Lodging Econometrics (LE)
This marks a new all-time high for projects in the U.S., surpassing previous pipeline records.
At the close of the third quarter, there are 1,185 projects/148,716 rooms under construction, marking an 11 per cent increase in projects and a 6 per cent increase in rooms YOY. Projects are scheduled to start construction in the next 12 months totaling 2,209 projects/251,797 rooms. Projects and rooms in early planning reached new all-time highs, at 2,817 projects/322,308 rooms, up 17 per cent by both projects and rooms YOY.
LE analysts report that the upper midscale chain scale continues to have the largest project count in the U.S. pipeline, reaching a new all-time high of 2,315 projects/224,703 rooms. Following is the upscale chain scale with 1,407 projects/174,127 rooms. Together, these two chain scales comprise 60 per cent of all projects in the total pipeline. The midscale segment also showed significant growth, reaching an all-time high with 928 projects/77,600 rooms, up 19 per cent by projects and 16 per cent by rooms YOY.
Construction starts grew to the highest level in 2024 to end the quarter, with 181 projects/20,840 rooms, up 18 per cent by projects and 25 per cent by rooms YOY. At Q3, brand conversion activity also reached an all-time-high project count with 1,247 projects/120,912 rooms. Combined with renovation activity of 722 projects/141,136 rooms, the total renovation and brand conversion pipeline in the U.S. stands at 1,969 projects/262,048 rooms.
Through the third quarter, 408 new hotels with 48,258 rooms opened in the U.S., with another 223 projects/23,902 rooms anticipated to open by year-end 2024. LE projects 2024 to finish at 631 new hotels with 72,160 rooms, a 1.3 per cent supply increase. Looking ahead, LE analysts forecast 759 new hotels/86,264 rooms to open in calendar year 2025, representing a 1.5 per cent supply increase. For 2026, LE forecasts 938 new hotels/101,017 rooms to open, amounting to a supply increase of 1.8 per cent.
