In 2020, despite the setbacks caused by the COVID19 for so many businesses deemed non-essential, the construction industry is still showing year-to-year increases in the pipeline of projects. Hotels are closed as a part of the regulative brought up to stop the spreading of the virus, however, non-existent or few reservations are not stopping hotel owners from starting renovations and asset repositioning. That being said, the hotel construction pipeline is also on the rise. Despite the setbacks in the first quarter of 2020, the end of the quarter is still showcasing rises in 2020.
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Construction Pipeline on the Rise: The Number of Projects Still Spiking
According to analysts at the Lodging Econometrics, the construction industry is showcasing rises in the number of projects emerging despite the previous setbacks. Following the report provided by Lodging Econometrics, the construction industry is showing year-to-year growth, also showcasing progress in the rising number of projects in the sector of hotel renovations. The industry is seeing a clear rise by 1% in the number of projects, totaling 5,731 projects in 2020 by far. Besides, there is an increase of 3% in the number of rooms being built in 2020, with over 700,000 rooms.
Early Planning Stage Projects Spiking in Addition to the Growing Pipeline
The latest analysis report by Lodging Econometrics also showcases the rise in the number of construction projects that are in the stage of early planning. This case confirms that the first quarter setbacks in 2020 are not disrupting the construction industry in entirety. The current rise in the early planning stage projects is reaching 11% by rooms, and 8% by projects in 2020 when compared to the numbers noted for 2019. Moreover, at the beginning of 2020, 114 new hotels were opened in the US with 312 new hotel projects in the pipeline for the first quarter of 2020.
