Hotel pipelines offer an indication of the potential evolution for the hotel supply and areas that attract hotel operators. By nature, the volume of the pipeline is constantly changing as new contracts are signed between hotel groups and investors and as announced projects – less often publicized – are abandoned due to financing problems or changing political circumstances in the countries concerned.
To present this control panel requires adding up the announcements made regularly by major groups in their financial reports as well as declarations made about destinations by tourism authorities. By comparing several sources, it is possible to project about five years into the future because that's the average delay between the announcement and actual opening. Figures should not be considered precise, but rather reflecting the magnitude and offering an indicator for rebalancing between geographic areas.
Thus, at the beginning of 2013, the volume recorded for projects forecasted by hotel chains and other operators in the United States surpasses 2,700 properties for a total of 320,000 rooms that will be built in the five years that follow. The concentration of the key markets is part of the rules of game at all destinations around the world. On the other hand, more than one third of the pipeline in terms of volume of rooms is concentrated in the primary ten American cities, including New York, Washington, Orlando and Chicago.
On the same period, the Canadian pipeline filled with some 200 projects for a global volume of 25,000 rooms. There again, the concentration of new projects is evident in the three Provinces that are already busiest in terms of hotels, Ontario around Toronto, British Colombia around Vancouver, and Québec around Montréal. In a mature country such as Canada, the pipeline has just filled a steady slump in the supply following a steady stream of closings (8,000 rooms in 2012 alone).
Latin America also shows good dynamism with some 250 hotels to open in the years to come, for close to 40,000 additional rooms. Brazil lies at the heart of projects with the arrival of the World Football Cup in 2014 and the Olympics in 2016, but it is not the only country that is progressing: the hotel supply in Colombia, Chili and Peru is being renewed, as is Panama’s. Twenty or so projects in Mexico may be added that benefited from the Mayan Year of Destiny in 2012, which boosted tourism. In the Caribbean, there are more than 100 hotel projects for a few fewer than 20,000 rooms, mostly at resorts.
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Thus, at the beginning of 2013, the volume recorded for projects forecasted by hotel chains and other operators in the United States surpasses 2,700 properties for a total of 320,000 rooms that will be built in the five years that follow. The concentration of the key markets is part of the rules of game at all destinations around the world. On the other hand, more than one third of the pipeline in terms of volume of rooms is concentrated in the primary ten American cities, including New York, Washington, Orlando and Chicago.
On the same period, the Canadian pipeline filled with some 200 projects for a global volume of 25,000 rooms. There again, the concentration of new projects is evident in the three Provinces that are already busiest in terms of hotels, Ontario around Toronto, British Colombia around Vancouver, and Québec around Montréal. In a mature country such as Canada, the pipeline has just filled a steady slump in the supply following a steady stream of closings (8,000 rooms in 2012 alone).
Latin America also shows good dynamism with some 250 hotels to open in the years to come, for close to 40,000 additional rooms. Brazil lies at the heart of projects with the arrival of the World Football Cup in 2014 and the Olympics in 2016, but it is not the only country that is progressing: the hotel supply in Colombia, Chili and Peru is being renewed, as is Panama’s. Twenty or so projects in Mexico may be added that benefited from the Mayan Year of Destiny in 2012, which boosted tourism. In the Caribbean, there are more than 100 hotel projects for a few fewer than 20,000 rooms, mostly at resorts.
To read the whole report, connect to your Subscribers' Space or buy the article online: hospitality-on.com/les-dossiers
