Hotel & Motel Management - October 6, 2008 - (Page 18)

18 Trends & Stats H&MM October 6, 2008 | HotelMotel.com www.HotelMotel.com/digital_edition Pipeline ﬁgures indicate increase in planned projects IN THE details Active pipeline numbers up Final planning phase Chain-scale contributions Market outlooks Total U.S. active development pipeline—rooms change from prior year July 2008 In construction Planned pipeline* 199,892 461,036 July 2007 196,332 363,265 Change 3,560 97,771 % change 1.8% 26.9% By Bobby Bowers H&MM Columnist L ooking at a snapshot of the U.S. active development pipeline shows us that rooms in the construction phase are similar to ﬁgures from July 2007. The notable ﬁgure is that those projects in the ﬁnal planning and planning phases have increased an astounding 26.9 percent over last year. What is yet to be determined is how long those projects in ﬁnal planning and planning will remain in a holding pattern. With a drawn-out recovery period, we may see a higher than normal attrition rate. When we take a closer look at the active pipeline by chain scale, the upscale and midscale-without-food-and-beverage segments are leading the pack. With 156,476 guestrooms and 175,444 guestrooms respectively, these two chain scales match the combined number of rooms contributed by the other ﬁve categories. Midscale without F&B continues to be the most popular chain scale, as developers look for shorter construction times and projects requiring less development capital. With a tighten- ing in the credit market, both land and construction costs have become major considerations. The upper-upscale chain scale took the biggest dip compared to July of last year, with a 27.2 percent decrease for rooms under construction. Perhaps the upscale segment took the biggest leap, as a 22.3 percent increase on top of a large pipeline compounds the growth of this group. This points to the continued strength of business travel and those associated brands. For example, the top three in the pipeline for the upscale segment are Hilton Garden Inn (26,008 rooms in the active pipeline), Courtyard by Marriott (19,911 rooms) and Residence Inn (17,368 rooms). By market, Las Vegas and New York lead with number of rooms under construction. While Las Vegas tops the charts with 14,400 rooms, it might be a bumpy rest of 2008 for Sin City as we hear of more projects getting deferred or abandoned. New York, with rooms always in high demand, should see some relief, with more than 10,200 rooms in construction. Many of those in the upscale and midscale categories will be welcomed by consumers looking for relatively reasonable room rates in the city. As it impacts existing supply, San Antonio’s pipeline will result in the biggest increase as a percentage of the market’s available rooms. The city’s pipeline of 4,800 rooms under construction represents 12.8 percent of existing supply. hmm@questex.com Bobby Bowers is senior vice president of operations for Hendersonville, Tenn.-based Smith Travel Research. *Planned pipeline includes projects in ﬁnal planning and planning phases. Total U.S. rooms under construction by scale in thousands—July 2008 60 51.1 58.2 50 40 30 22.9 38.9 20 12.3 10 0 6.9 9.5 Luxury Upperupscale Upscale Midscale Midscale Economy Unafﬁliated w/F&B w/o F&B U.S. chain scales percentage change in room under construction–July 2008 Luxury Upper-upscale -27.2 Upscale Midscale w/F&B Midscale w/o F&B Economy 0.1 13.8 21.3 22.3 -16.7 -35 -25 -15 -5 5 15 25 35 Top 10 MSAs—rooms under construction—% existing supply—July 2008 Top 10 MSAs—rooms under construction in thousands—July 2008 San Antonio Las Vegas Phoenix New York Houston Dallas Orlando Washington, D.C. Chicago Los Angeles 3.0 5.4 4.8 4.5 4.1 6.5 9.7 9.0 8.4 12.8 Las Vegas New York Orlando Dallas Phoenix San Antonio Houston Chicago Los Angeles Washington, D.C. 5.5 5.4 4.9 4.8 4.6 4.6 4.4 4.3 12.8 14.4 0 5 10 15 20 0 5 10 15 20 © 2008 Smith Travel Research http://www.HotelMotel.com http://www.HotelMotel.com/digital_edition

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Hotel & Motel Management - October 6, 2008 Contents NYLO Brands Mix Up Lifestyle Segment La Quinta Eyes Mexico, Canada for Growth Perspective Legally Speaking Marketing Matters Satisfaction Trends Maintenance Doctor HotelWorld Update Trends & Stats Independent Hotels Top Hotel Multiunit Owners and Developers Survey Cleaning & Maintenance Music Wallcoverings Supplier News Transactions Softgoods: Bedding & Linens People Events Ad/Editorial Index Marketplace Classifieds Checking Out

Hotel & Motel Management - October 6, 2008

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