Construction Pipeline for Hotel Development
Hotel development is an important part of the portfolio for our American Life, Incorporated investors. We’ve talked about the positive financial outlook for hotel development. Today, we’ll discuss how things look in the US hotel construction pipeline.
Hotel construction continues its upward trend. For 2019, there are an estimated 5,530 projects in the pipeline with a total of 669,456 new rooms for the market. This is up 7% from last year but is not equal to its all-time high in 2008 or 5,883 projects.
Hotel construction projects that are in the early planning stages are at 1,723, an all-time high. These projects will add 199,326 rooms to the inventory and represent a 14% increase from last year. There are 2,153 projects that are scheduled to break ground in the next 12 months. These are the highest numbers since 2008.
Last year, 947 new hotels opened, adding 112,050 rooms to the inventory. This was a 2% growth. Last year, the total number of open hotels in the US were 56,909, with 5,381,090 rooms.
The forecast for new hotel openings shows a growth of 2.2% and 2.3% for 2019 and 2020, respectively. The new properties will be primarily in the upper midscale and upscale chain scales.
New York has seen the largest percentage of new inventory development, and its pace is expected to slow as we approach 2020. Other markets throughout the US will gain some share.
Hotel development continues to be a positive element of a strong investment portfolio.
For information on expanding your portfolio to include hotel development, contact American Life, Incorporated today. Our investment professionals will answer your questions about all our programs, including the EB-5 visa investor program. We oversee the entire development process, from site acquisition to construction and operations management. Contact us online or at 206-381-1690 to reach our US office at 2710 S. Hanford Street, Suite 100, in Seattle, Washington, or contact us at any of our international offices in Shanghai, Tokyo, or London.