|U.S. hotel development suffers from limited financing.|
An analysis has revealed that while US$10 billion in new hotels opened in the United States last year, these developments were near their lowest levels ever reported.
STR Analytics has released the Hotel Development Almanac which attributing a lack of funding to the decrease in new developments, with just 420 hotels being opened in 2012.
“With a limited amount of financing available for new developments, the volume of new rooms entering the market is negligible in most cities,” STR Analytics director Steve Hennis said.
“However, with continued improvement in both the general hotel industry as well as the national economy, we are beginning to see the pace of new construction increase.”
Hampton Inn & Suites and Holiday Inn Express had the most hotel openings in 2012, while the most active market for development last year was North Dakota, with 23 new hotels opened.
New York City was the most expensive area for development in 2012 and the majority of properties opened last year were upscale and upper midscale hotels.
More than 600 new hotels are scheduled to be opened throughout the U.S. in 2013.