• Wed. Apr 24th, 2024

Hotel Construction Data Points To Confidence in Future of Business Travel

Bynewsmagzines

Apr 18, 2023
Upper upscale hotels often cater to business travelers, like the New York Marriott Marquis shown here. Today there are more than 23,000 upper upscale rooms in construction in the United States, a sign of confidence in the return of business travel according to CoStar's hotel analytics firm STR. (James Hooker/CoStar)

[ad_1]

Upper upscale hotels, the property types most associated with business travel, are well represented in the U.S. development pipeline. The volume of projects in the segment points to confidence in the future of business travel, according to STR.

“Upper upscale saw the slowest recovery, but a steady climb in performance and the business travel indicators have supported developer confidence in the segment,” said Isaac Collazo, STR’s VP, analytics. “The more than 23,000 upper upscale rooms in construction right now represent 3.4% of the segment’s existing supply. That is well above the long-term growth average (+2%) in the U.S.”

March 2023 (percentage change in comparison with March 2022):

  • In Construction: 154,284 rooms (-0.5%) 
  • Final Planning: 239,995 rooms (+34.6%) 
  • Planning: 232,517 rooms (-21.6%) 

After three consecutive month-over-month increases, the overall number of U.S. rooms in construction fell slightly in March, which aligns with patterns in previous years. Among the chain scale segments, luxury shows the highest number of rooms as a percentage of existing supply.
1. Luxury (5.2%, 7,136 rooms)
2. Upscale (4.1%, 36,089564 rooms)
3. Upper Midscale (3.7%, 43,470 rooms)
4. Upper Upscale (3.4%, 23,564 rooms)
5. Midscale (2.1%, 10,363 rooms)
6. Economy (1.0%, 6,302 rooms)

“Luxury, though the smallest in terms of room count, shows the highest projected growth against existing supply, matching the rate gains experienced in the segment over the last few years,” Collazo said. “Select-service (upper midscale + upscale) continues to grow as well, which is no surprise given how well the segment of the market has regained demand. The upper tier of select-service also caters to the business traveler.”

STR provides premium data benchmarking, analytics and marketplace insights for the global hospitality industry. Founded in 1985, STR maintains a presence in 15 countries with a North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces. For more information, please visit str.com and costargroup.com.

The above is a news release written by a third party. While HNN’s editorial mission is to produce unique content, it occasionally publishes timely, newsworthy news releases to complement in-house reporting efforts. All news releases are clearly marked as such. For questions and clarification, please contact Editorial Director Stephanie Ricca at sricca@hotelnewsnow.com.

Return to the Hotel News Now homepage.

Leave a Reply

Your email address will not be published. Required fields are marked *