Hotel Project Abandonment Soars 12/18/2008 | The number of hotel guestrooms in the construction pipeline in the United States that have been abandoned is increasing The number of hotel guestrooms in the construction pipeline in the United States that have been abandoned increased by 75 percent in November 2008 over November 2007, according to data from the STR/TWR/Dodge Construction Pipeline Report. The Total Active Pipeline for the United States through November includes 631,680 guestrooms - including 191,807 that are in the "In-Construction" phase. The Total Active Pipeline figure is 6.7-percent higher than it was in November 2007, while the number of rooms in the In-Construction phase is 6.8-percent lower than it was in November 2007. November 2008 figures released last week show that 93,219 guestrooms have been abandoned in various stages of development - from Pre-Planning to In Construction. That figure is 8,729 more guestrooms than in October 2008, and 39,887 more guestrooms than were abandoned as of November 2007. "Given the current state of the economy and the non-existence of new-construction lending, these numbers aren't surprising," says Jan Freitag, STR's vice president of global development. "We believe that we will continue to see this high level of abandonment through at least the first half of 2009. Until new funding for new and existing projects is made available by lenders, there is little reason to believe that the rate of abandonment will slow." The November report shows that the total U.S. supply of 4,677,165 guestrooms through November is 3.2-percent higher than it was at the end of November 2007. Five of the nine U.S. regions reported year-over-year decreases in the number of guestrooms in the In-Construction stage: New England (-47.2 percent), West North Central (-27.3 percent), Pacific (-26.5 percent), Mountain (-23.7 percent), and East North Central (-12.7 percent). The West South Central region, which consists of Arkansas, Louisiana, Oklahoma, and Texas, reported a 17.7-percent year-over-year increase of rooms In Construction. Other regions include: Middle Atlantic (+12.2 percent), South Atlantic (+3.1 percent), and East South Central (0.0 percent). 'The number of rooms In-Construction continues to decline significantly in many regions, with very notable exceptions in the Middle Atlantic and West South Central," says Duane Vinson, STR's vice president, content management. "With increased difficulty in securing financing and many brands cautious about their '09 debt ratio projections, you should expect more of the same in the coming quarters." For more information, visit www.strglobal.com. Previous ArticleNext ArticleENERGY STAR Announces 2013 Upgrade of Portfolio Manager Twitter Facebook LinkedIn Email Share Share Other Open Social Related Coverage ENERGY STAR’s Portfolio Manager Adds Waste and Water Tracking How to Build a Waste Management Program LG Electronics Recycles 24,000 Tons of Used Devices Related Articles Sustainability / Resilience BIFM Revises Good Practice Guide on Recycling and Waste Management Sustainability / Resilience How to Properly Green Clean Buildings Sustainability / Resilience Green Cleaning Sustainability / Resilience 5 Tips for Optimal Window Performance Life/Fire Safety 7 Most Essential NFPA® Standards for Building Owners Sustainability / Resilience How to Future-Proof Your Building Building Controls The First Steps of Adding Intelligence to Your Facility Energy Management How to Increase Productivity and Engagement in Outdoor Spaces Building Controls Fine-Tuning HVAC Controls for Maximum Efficiency Related Articles 13 Tips for Certification Success Survey Reveals Changing Building Trends One World Trade Center Officially U.S.’s Tallest Building Cerebral Design Enhances Patient Experience Promoting Collaborative Healthcare Through Design Sponsored Links Smart roof systems improve building energy efficiency. Polyglass’ Polyfresko® cap sheets with CURE Technology® saves on energy. Engineered to perform, Polyfresko has superior granule adhesion and excellent puncture, stain and UV resistance. Increase profitability by cleaning smarter and transforming your building into a high performing asset. Get tips from High Performance Building experts Whether it’s earning an IREM credential or increasing your job skills, any goal in property management can be accomplished with IREM education. Click here to visit our website!