Hotel Online  Special Report

New U.S. Hotel Room Construction Should Reach
98,000 in 2005, Highest Level Since 2000
When Room Starts Were 120,000


New York May 17, 2005 - U.S. room starts in 2005 (the number of hotel rooms beginning construction) will increase by 21.5 percent to approximately 98,000, the largest increase since 1997 and the highest level since 2000 when room starts were 120,000.

The increase is due to impressive RevPAR (revenue per available room) increases which attract developers, investors and lenders, according to PricewaterhouseCoopers.

The largest increase will be in midscale without food and beverage (for example: Hampton Inn) and the highest price segments (for example: Marriott and Courtyard-by-Marriott) according to PricewaterhouseCoopers. The highest price segments, luxury, upper upscale and upscale represent 22.5 percent of current supply, according to Smith Travel Research, but 30.5 percent of what is under construction.

As these rooms are completed, they will add 1.3 percent to the U.S. lodging supply, the largest in three years.

PricewaterhouseCoopers forecasts continuing increases in the number of rooms starting construction in 2006 with growth of 20 percent.

PricewaterhouseCoopers ( provides industry-focused assurance, tax and advisory services for public and private clients. 


Cheryl L. Riporti
Hospitality & Leisure
PricewaterhouseCoopers LLP
300 Madison Ave.
New York, New York   10017
Phone:  646-471-7837

Also See: Manhattan Hotel Occupancy Increased to 83.2% In 2004, In 2005 Occupancy May Grow to 84.9% / PricewaterhouseCoopers / March 2005
The Gates in New York's Central Park Contributed an Additional 85,000 Room Nights and $26 Million in Revenue for New York City Hotels Between February 13 and February 28 / March 2005

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