Hotel industry experts indicate the demand for hotel space is growing beyond the current supply, fueling a significant rise of US hotel construction projects in several major American cities.
In an article on the industry website Construction Global, writer John McMalcolm reported on the current status of hotel construction and where the largest increases in hotels can be found.
The rise of hotel construction projects comes in response to a substantial increase in the number of customers seeking hotel accommodations. This is leading many major players in the hotel industry to either expand their existing hotels or build entirely new buildings, McMalcolm noted.
More than 2,900 hotel construction projects were underway at the beginning of 2014, according to data from Smith Travel Research (STR), as cited by McMalcolm. These projects total nearly 358,000 rooms in cities and communities across the United States.
The 2014 numbers represent a 16.4 percent increase in hotel construction from the same time in 2013, McMalcolm reported. In 2015, industry experts expect growth levels to continue to rise until the number of available hotel rooms meets demand.
Cities in which the largest number of hotel projects are underway include:
- New York, NY: The needs of business travelers and tourists in the Big Apple make New York a prime candidate for hotel construction increases. These two segments have increased hotel occupancy rates each year from 2010 to 2014, according to STR data.
- Pittsburgh, PA: Pittsburgh, as one of the east’s most appealing cities, is experiencing a hotel boom centered mostly in the downtown area. More than 55 hotels are currently underway throughout Pittsburgh.
- Miami, FL: Business and travel interests make Miami a popular destination, which means the city needs plenty of hotel space.
McMalcolm also noted substantial increases in hotel construction in other cities, including Chicago, IL; San Francisco, CA; Dallas, TX; Austin, TX; and Oklahoma City, OK.
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