Development Pipeline for New Hotels Throttles Ahead Remarkably to Record Highs — For Now
Photo Credit: The U.S. hotel industry continues to hit record construction highs despite the ongoing economic crisis relating to coronavirus. Wikimedia / Edward Orde
Skift Take
The U.S. hotel industry may already be inching into recovery territory while hotel construction has yet to begin a decline that could last years.
The U.S. hotel supply continues to grow at a record pace, even with the industry facing its worst downturn in recorded history. But the building boom’s days are numbered.
Many hotels around the world are temporarily closed due to the coronavirus downturn in travel. But looking at hotel construction sites around the U.S., you wouldn’t know the worst economic blow to the industry is underway. The number of U.S. hotel rooms under construction hit a record high of 215,000 in March, according to STR. The record was again eclipsed in April — the first full month of widespread travel restrictions in the U.S. — when the number swelled to 220,000. Eventually, the pandemic will catch up with hotel development, STR Senior Vice President of Lodging Insights Jan Freitag said.
“I think this is going to deteriorate,” he added. “We will not see a rapid acceleration, but it’s going to come down.”
Get the Latest on Coronavirus and the Travel Indust
