Upscale Segment Leads US Hotel Pipeline Growth

---

The total active U.S. hotel development pipeline increased 15.6 percent in September, compared to last year, according to a recent STR pipeline report.

September's development pipeline -- which includes projects in construction, final planning and planning stages -- is comprised of 2,767 projects totaling 333,775 rooms. The report shows a 29.5 percent increase in rooms under construction. 

The upper upscale segment reported the largest increase of rooms in the total active pipeline, increasing 45.5 percent with 22,689 rooms, STR reports. 

Two other segments achieved double-digit increases in rooms in the total active pipeline: the Unaffiliated segment (+31.2 percent with 100,561 rooms) and the Upscale segment (+16.0 percent with 87,867 rooms). The Luxury segment reported the largest decrease in rooms in the active pipeline, falling 18.4 percent with 6,848 rooms.

Three segments reported increases in rooms under construction of 25 percent or more: the Upscale segment (+51.8 percent with 30,580 rooms); the Midscale segment (+35.2 percent with 3,863 rooms); and the Upper Midscale segment (+25.0 percent with 23,689 rooms). The Economy segment (-8.0 percent with 1,169 rooms) and the Upper Upscale segment (-1.9 percent with 7,417 rooms) were the only segments to report decreases in rooms under construction.