U.S. Hotel Construction Projects Up
Skift Take
- Pebblebrook Hotel Trust beat expectations in Q2, aided by higher business interruption insurance proceeds and share repurchases.
- U.S. hotel construction pipeline sees steady growth with significant upscale and upper midscale projects.
- Several new hotel developments and acquisitions are planned, including a boutique Kimpton Virgilio in Mexico City and the first Hyatt Centric in Winnipeg.
Pebblebrook Hotel Trust pre-announced in late June, but it still beat expectations though that was mostly due to higher-than-expected business interruption insurance proceeds. PEB repurchased 3.6 million shares in 2Q for $50 million. Their guidance was pretty much in line.
According to the Q2 2023 United States Construction Pipeline Trend Report by Lodging Econometrics, at the close of the second quarter, the hotel construction pipeline stands at 5,572 projects/660,061 rooms, with projects up 7% year over year and rooms up 6% YOY. Projects under construction currently stand at 1,062 projects/141,681 rooms, up 10% and 8% YOY, respectively. Projects scheduled to start construction in the next 12 months saw an 11% increase in projects and a 12% increase in rooms YOY to stand at 2,232 projects/260,595 rooms at the close of the second quarter. The year-over-year project counts in the early planning stage ended Q2 '23 with 2,278 projects/257,785 rooms, marking t
