Hotel developers appear to be encouraged by a continued rebound in occupancy and room rates, and are green-lighting in increasing number of lodging developments, according to Smith Travel Research.
The number of U.S. rooms in the development pipeline as of last month was 319,482, which widened 9.2% from a year earlier.
The number of rooms under construction widened 19% to about 72,500. The development pipeline represents 6.5% of the existing room inventory.
Investors are showing the most confidence in higher-end developments, expanding the pipeline of luxury hotel rooms by 61% and the upscale pipeline by 25% from a year earlier. The midscale and economy pipelines continue to shrink.
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