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15 January 2009
Global 2009 Hotel Pipeline Report | Lodging Econometrics (LE)
After peaking in Q2 2008, the Total Global Construction Pipeline decreased 6% to 10,169 projects/1,707,817 rooms. All regions reached cyclical peaks in Q208 except Canada, the Caribbean, Mexico, Central and South America, which crested earlier in Q108. All regions experienced a Quarter over Quarter (QoQ) decline in Q308. Many showed a noticeable deceleration in projects and room counts.
Several factors have prompted this turnabout:
- Global economies are experiencing a serious slowdown. Some significant regions are characterized as recessionary. The slowdown is expected to continue through 2009 and perhaps into 2010.
- Operating performance drifted down from the 2007 highs throughout the first half of 2008. The decline accelerated in early summer when the impact of the economic and banking crisis became fully apparent. The failure of a number of financial institutions in mid-September and accelerating downward trends in the stock markets and bourses compounded the situation further.
- Serious cutbacks in leisure and business travel have turned guest room demand negative, causing occupancies and room rates to fall and prompting declines in RevPAR. The result is that Pipeline growth has concluded for this cycle and has turned downward. Lending has been mostly unavailable throughout the year, with larger project development in major cities, financial centers and resort areas, seeing the most significant impact. Smaller to mid-size project development has also been affected but to a lesser degree, as some such projects have been able to source funding. However, loan amounts are less and terms are far more restrictive. Another factor contributing to Pipeline declines is New Hotel Openings, which will be at decade highs in 2009-10.
Lodging Econometrics (LE) of Portsmouth, NH is the global authority for hotel real estate. LE conducts Supply Side research for all markets, developers and brands and companies in: U.S., Canada, Mexico, Central America and the Caribbean, Europe, Asia, Middle East, South America, and Africa.
CONTACT
Kathleen Hurley
Phone: +1 603-431-8740 ext. 12
Email: khurley@lodgingeconometrics.com
ORGANIZATION
 Lodging Econometrics
http://www.lodging-econometrics.com
500 Market St., Suite 13
USA
- Portsmouth, NH 03801
Phone: (603) 431-8740
Fax: (603) 431-4418
RECENT NEWS
Thursday 4 March 2010 | At the end of Q4 2009, the total Construction Pipeline for EMEA has 1,373 projects/285,770 rooms. Pipeline counts have now declined 22% by projects and 23% by rooms since the Q2 2008 peak.
Monday 25 January 2010 | Lodging Econometrics predicts that just 717 hotels, representing 82,620 rooms, will open in 2010. This is a 56% drop from 2009, when 1,301 hotels with 146,929 rooms opened. The new openings peak for the cycle was 1,345 hotels/154,667 rooms recorded in 2008.
Wednesday 9 September 2009 | For the first time, Lodging Econometrics (LE) has compiled and announced its 2011 Forecast for New Hotel Openings for Europe, the Middle East and Africa. 322 projects/72,077 rooms are forecasted to come online in 2011.
All Articles from Lodging Econometrics
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