HENDERSONVILLE, Tenn. – The number of U.S. hotel rooms in construction was down roughly 61,000 from the country’s all-time high achieved in April 2020, according to December 2021 hotel pipeline data from STR.
The final two phases of the pipeline, construction and final planning, are down by double digits from the same time last year while activity in the planning has risen significantly.
According to the data, here are the numbers in December 2021 (percentage change in comparison with December 2020):
– In construction: 158,906 rooms (down 19.2 percent)
– Final planning: 185,231 rooms (down 20.6 percent)
– Planning: 284,502 rooms (an increase of 38.9 percent)
“This past year was the second in a row with far fewer rooms in construction and final planning, but the rise in planning activity could be an indicator the pandemic’s impact on the pipeline will be different than what we saw during the [recession of 2008 and 2009],” said Alison Hoyt, STR’s senior director of consulting. “During the previous recession, construction declines persisted from 2008 through 2010, but with a massive jump in planning today, the construction downturn may last as long as more rooms advance to later phases of the pipeline.”
As of January 2022, New York City led the U.S. with more than 15,000 rooms in construction. The top three Southern cities in terms of hotel room construction are Atlanta (5,078 rooms), Dallas (4,764 rooms), and Nashville (4,708 rooms).