The variety of U.S. resort building tasks within the growth pipeline on the finish of the second quarter was about 9 p.c larger than one yr prior, in accordance with a brand new report from Lodging Econometrics. Whereas the corporate expects development to proceed attributable to builders’ pent-up demand, elevated prices for supplies and provide chain points may sluggish its tempo, in accordance with the report.
The whole second-quarter U.S. resort building pipeline stood at 5,220 tasks, up 9 p.c yr over yr, representing about 621,000 rooms, up 4 p.c. Tasks within the early planning levels of growth had been up 26 p.c to almost 2,250—a report excessive, in accordance with Lodging Econometrics—representing a 15 p.c in improve in rooms. Nevertheless, the corporate reported 965 tasks below building, representing about 131,000 rooms, figures that had been down 17 p.c and 18 p.c, respectively, from one yr prior.
Lodging Econometrics predicted growth development would proceed all through 2022 and famous that “pent-up demand and elevated client sentiment and spending has led to record-high charges of journey and far improved resort income over the previous couple of months,” however recommended jittery financial situations cloud builders’ futures.
“Market volatility, persistent inﬂation, rising power costs, elevated transportation prices, supplies shortages, and provide chain backlogs proceed to pose a problem and sluggish the timeline to full restoration,” in accordance with Lodging Econometrics. Nonetheless, the corporate famous that “company and private steadiness sheets are fairly robust, the U.S. banking system is wholesome, and the planning of latest resort tasks continues. Resort traders and builders are nonetheless keen to maneuver ahead on tasks and are being extra aware when approaching a deal.”
Marriott Prime Chain
Marriott Worldwide had extra U.S. tasks below building on the shut of the second quarter than some other resort firm, with 1,355 tasks representing about 167,000 rooms in growth. Hilton Worldwide had 1,312 tasks representing about 148,000 rooms within the pipeline, and IHG Lodges & Resorts had 789 tasks with about 79,700 rooms.
Hilton’s Home2 Suites led all particular person manufacturers with 465 tasks in growth, totaling about 48,000 rooms, adopted by IHG’s Vacation Inn Categorical (299 tasks with about 28,600 rooms) and Hilton’s Hampton manufacturers (281 tasks with about 28,600 rooms). Marriott’s TownePlace Suites (270 tasks with about 25,300 rooms) and Fairfield Inn (235 tasks with about 21,900 rooms) adopted.
Dallas Leads Cities
Extra tasks as of June 30 had been within the pipeline for Dallas than some other U.S. location, with 173 tasks deliberate totaling about 20,700 rooms. It was the fourth straight quarter Dallas topped the pipeline record, and the second-quarter figures had been report highs for town, in accordance with Lodging Econometrics.
Dallas was adopted by Atlanta (140 tasks with about 18,100 rooms), Los Angeles (124 tasks with about 20,400 rooms), New York (113 tasks with about 19,200 rooms) and Phoenix (108 tasks with about 15,000 rooms.)