Global Hotel Construction Report Shows Positive Gains in Most Markets

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According to STR's latest Hotel Construction Pipeline Report, most global markets posted increases in new hotel construction in February 2011.

Caribbean/Mexico

The Caribbean/Mexico hotel development pipeline comprises 129 hotels totaling 19,593 rooms.

"There has been a modest increase in rooms under construction in the Caribbean/Mexico region compared to the same period last year," said Lana Yoshii, VP of content management at STR. "The Upscale and Luxury segments are reporting the highest volume of affiliated rooms under construction (2,510 rooms and 2,487 rooms, respectively). With the addition of these rooms under construction, Luxury branded hotel supply will be increased by almost 11 percent and Upscale supply will increase by 3 percent. While the Independent segment accounts for the largest absolute number of rooms under construction (2,897 rooms), they only will increase the segment's existing supply by less than 1 percent when opened."

Among the Chain Scale segments, the Upper Midscale segment accounted for the largest portion of rooms in the total active pipeline with 24.4 percent and 4,782 rooms. Three other segments each made up more than 15 percent of rooms in the total active pipeline: the Upscale segment (23.7 percent with 4,650 rooms); the Luxury segment (18.6 percent with 3,635 rooms); and the Unaffiliated segment (17.2 percent with 3,367 rooms).

Caribbean/Mexico pipeline by Chain Scale segment for March 2011 (number of rooms):

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Asia/Pacific

The Asia/Pacific hotel development pipeline comprises 1,132 hotels totaling 283,187 rooms.

Among the countries in the region, India has the largest increase in supply (31.4 percent) if every one of the 48,636 additional rooms in its total active pipeline open. Other countries to expect significant changes in supply include: Vietnam (+27.8 percent with the addition of 10,447 rooms); Philippines (+21.7 percent with 7,426 rooms); China (+13.2 percent with 160,799 rooms); and Indonesia (+12.1 percent with 12,286 rooms).

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Central/South America

The Central/South America hotel development pipeline comprises 154 hotels totaling 24,044 rooms.

Among the countries in the region, Brazil reported the largest number of rooms in the In Construction phase with 4,125 rooms. Other countries to report a significant number of rooms in the In Construction phase include: Panama (2,744 rooms); Colombia (1,780 rooms); Argentina (1,196 rooms); and Peru (695 rooms).

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Europe

The European hotel development pipeline comprises 747 hotels totaling 123,882 rooms.

Among the markets in the region, Birmingham, United Kingdom, will report the largest increase in supply (20.4 percent) if every one of the 1,941 additional rooms in its total active pipeline open. Other markets to expect significant increases in existing supply include: Manchester, U.K. (18.7 percent with 2,291 rooms in its total active pipeline); Glasgow, U.K (16.9 percent with 1,224 rooms); Moscow, Russia (14.2 percent with 4,836 rooms); and Edinburgh, U.K.(11.2 percent with 1,135 rooms).

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Middle East/Africa

The Middle East/Africa hotel development pipeline comprises 429 hotels totaling 118,338 rooms.

Year-to-date, 17 properties comprising 4,097 rooms have opened in the region. Overall in 2011, there are 164 more properties comprising 39,682 rooms expected to open, which would amount to a 6.6-percent increase in room supply for the remainder of 2011. During 2012, the region is expecting 137 projects comprising 35,401 rooms to open. During 2013, 67 projects comprising 20,310 rooms are expected to open.

Among the Chain Scale segments, the Upper Upscale segment is expected to open the largest number of rooms during the remainder of 2011 with 39 projects comprising 11,523 rooms, followed by the Unaffiliated segment (47 projects comprising 9,716 rooms) and the Upscale segment (29 projects comprising 7,343 rooms).

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