PORTSMOUTH, NH – In the first quarter of 2019, analysts at Lodging Econometrics (LE) report that the top five markets with the largest hotel construction pipelines are New York City with 170 projects/29,247 rooms. Next are Dallas and Los Angeles, both at record highs, with 163 projects/19,689 rooms and 158 projects/25,578 rooms, respectively. Houston follows with 151 projects/15,643 rooms, and Nashville with 116 projects/15,599 rooms.
Markets with the greatest number of projects already under construction are New York with 119 projects/20,068 rooms, Dallas with 48 projects/6,265 rooms, and Los Angeles with 42 projects/6,288 rooms. Houston has 36 projects/4,162 rooms while Nashville, Austin, and San Jose all have 34 projects presently under construction.
Reflective of the increasing pipeline, LE’s forecast for new hotel openings will continue to rise through 2020. In 2019, New York City tops the list with 63 new hotels expected to open with 9,605 rooms, followed by Dallas with 30 projects/3,604 rooms, Houston with 28 projects/3,342 rooms, Austin with 25 projects/2,512 rooms, and Nashville with 23 projects/3,030 rooms. In the 2020 forecast, New York continues to lead with the highest number of new hotels anticipated to open with 44 projects/6,225 rooms followed by Los Angeles with 35 projects/5,140 rooms and Dallas with 33 projects/4,163 rooms.
The number of markets where supply growth is now exceeding demand growth continues to increase. At the first quarter, 18 of the top 25 markets experienced the shift, up from 12 of the top 25 markets at the end of the fourth quarter of 2018.
Markets of concern where new supply is already outpacing demand and future new openings are forecasted to be high are Houston, New York, Dallas, and Los Angeles.
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About Lodging Econometrics (LE)
Lodging Econometrics is the leading provider of global hotel intelligence. Combining unparalleled industry experience, a real-time pulse on market trends and extensive knowledge of key decision-makers, LE delivers actionable business development programs for hotel franchise companies looking to accelerate their brand growth, hotel ownership and management companies seeking to expand their real estate portfolios, and lodging industry vendors wanting to increase their sales. LE’s programs turn a client’s business goals into opportunities that advances their competitive advantage.