STR’s February 2017 Pipeline Report shows 578,508 rooms in 4,775 hotel projects Under Contract in the
United States. The total represents a 16.3% increase in the number of rooms Under Contract compared with
February 2016.Under Contract data includes projects in the In Construction, Final Planning and Planning
stages, but does not include projects in the Unconfirmed stage.In the In Construction stage, the U.S.
reported 194,455 rooms in 1,481 projects. Based on the number of rooms, that is a 29.3% increase in year-
over-year comparisons.”Hotel development activity continues to ramp up, and we’re now just 8% below the
all-time construction peak reached in 2007,” said Bobby Bowers, STR’s senior VP for operations. “As
expected, all of the new supply entering the market is affecting occupancy levels and hotelier pricing
power.”Among the Chain Scale segments, Upper Midscale (63,274 rooms in 618 hotels) accounted for the
most rooms In Construction followed by Upscale (62,083 rooms in 463 hotels).”Construction in the limited-
service segment hasn’t cooled off, with more than 125,000 rooms being built between Upper Midscale and
Upscale,” Bowers said. “Not only does that figure represent roughly two-thirds of all U.S. hotel construction,
it also is a 24% increase from last February.”Despite representing the lowest number of rooms in the pipeline,
the Economy segment reported the largest percentage increase for rooms Under Contract (+122.9% to
11,013 rooms).The Upper Upscale segment reported the largest percentage increase for rooms In
Construction (+91.3% to 27,457 rooms).