Following 2011's 75% Decline in New Hotel Openings, Trend Expected to Break by End of Decade Says LE
March 5, 2015 9:00am
Since then, new supply growth has been slow and incremental. New Hotel Openings were a paltry 412 in 2012, 488 in 2013 and 557 hotels with 63,352 rooms in 2014. LE forecasts that just 726 new hotels will open in 2015 and 797 hotels in 2016. The sharpness of the decline and the prolonged nature of the economic malaise delayed the rekindling of hotel development and continues to cause sluggish supply growth.
Because the Pipeline is just beginning to breakout Total New Hotel Openings are not expected to peak until 2018-2019 as the typical hotel project takes an average of 22 months to migrate through the Pipeline before eventually opening as an addition to new supply.
Tags: lodging econometrics
Contact: Peter Martin
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