Hotel construction in the U.S. is overflowing with projects that have not yet begun. This could be an indication of a further slowdown in supply growth.
CoStar reports that there were approximately 139,000 new hotel rooms under construction across the country at the end second quarter. That’s a drop of around 15,000 compared to the same period last year.
The number of rooms in the planning and final stages of planning has increased to over 615,000. The number of rooms in the final stage has increased by nearly 10% compared to a year earlier.
Brands are still pushing for new products and developers want to continue building. Deals are increasingly impossible to make, because of high costs and lending restrictions caused by rising interest rates.
Jan Freitag is the national director for hospitality analytics at CoStar. It’s very, very difficult
