Yet as planned projects pile up, the development of the Skift TakeHotel is stuck in negative as rising costs and limited capital constraints prevent construction. The source of U.S. hotel rooms has recovered from the Covid accident, but it is still significantly below pre-pandemic levels. Until 2020, expansion was constant at 1.3 % annually. It’s currently only 0.5 %, largely as a result of expensive design and limited financing conditions. In our most recent record,” U.S. Hotel Supply Outlook: How Slowing Development Is Shaping the 2025 Marketplace,” Skift Research examines the causes of the decrease and its effects. Its opening rate dropped from more than 127, 000 areas in June 2021 to just 73, 000 in September 2024. The supply of upcoming motel rooms has increased significantly, but just a small portion of the story can be told. As of September 2024, the network had more than 760, 000 rooms, away from 632, 000 areas in August 2023. It now accounts for 13 % of the total current supply, up from the previous level of about 11 %.
Nevertheless, a closer examination of the pipeline reveals that the majority of its growth is driven by designed hotel rooms rather than those that are currently being built. Rooms in development are still not at their pre-Covid levels despite the anticipated pipeline of room additions having increased over the past five years. There were 157, 000 hotel rooms under construction in the United States as of September 2024, which is 25 % less than the 209, 000 that were under construction at the beginning of 2020. From 31 % of the pipeline in January 2020 ( with the rest being planned rooms ) to 21 % in September 2024, the pipeline’s total has fallen. With a clear correlation to the decline in hotel rooms in design, rising development costs have had a significant impact on hotel development in the United States ( we used the purchasing power index as a price gauge for the development of non-residential buildings ). Although development costs stabilized in 2024, they nevertheless remain significantly above 2019 levels, and building space costs are still significantly above. Constrained provide has more impacted the number of hotel suites that are gradually opened, which in turn has had an impact on market dynamics. In our most recent Skift Research review, we highlight three major effects of a hotel room supply constraint: high demand and limited supply have resulted in significant price growth. Separate hotels have disproportionately been impacted by strong debt markets and rising construction costs, which has allowed branded chains to increase their market share. The difference between high building costs and relatively low acquisition costs has prompted M&, A exercise among hotel brands. In the document, we go into these more detail. What You Can Learn From This ReportGrowth levels of hotel room supply in the United States todayThe number of hotels in the pipeline for fresh openingsHow rising development costs have resulted in higher hotel room occupancy rates, brand dominance over separate hotels, and increased M&, A action as a result of high development costs and relatively lower consolidation prices. Opportunities for future growth across the chain level, including a study of the major hotel brands ‘ market share per chain level. This is the most recent in a line of research reports, analyst sessions, and data sheets designed to examine the causes of travel disruption. These reports are intended for a decision-maker in the busy travel industry. Investigate the viewpoints and insights of our seasoned staff members and contributors. Each report contains more than 200 hours of desk research, data analysis, and/or data collection. Subscribe to Skift Research ReportsAs a subscriber, you will have access to our complete library of reports, analyst interviews, and data sheets on subjects ranging from technology to marketing strategy to in-depth research on notable travel brands. Reports can be ordered online in a responsive design format, or you can also purchase each report separately for a higher price. Up Next Experiences How Travel Brands Can Take Advantage of the” Q5″ Opportunity on TikTok Driven by increased spending on experiences and the digital habits of younger audiences, TikTok has emerged as a crucial platform for motivating and influencing travel decisions. The platform’s early-in-the-year reach offers travel brands a unique opportunity to connect with eager travelers. From Safety Task Forces to Smog Solutions India’s inbound faces a number of challenges, some of which include the perception that there are no women’s safety and health risks posed by air pollution. The first step in attracting foreign tourists is the implementation of solutions at the global level. Airlines WestJet Cuts Some Routes Amid Rising U.S. Canada Tensions 5 hours ago. WestJet did not specifically attribute the U.S. route cuts to the current political climate, but it stated that it was “focused on continuing to fly where there is demand.”
