US high end hotel pipeline thrives with US$110 billion of investment

Pictured: rendering of The Ritz-Carlton, Paradise Valley guestroom.
US high end hotel supply is in rude health for the coming years, with a pipeline worth at least US$109.8 billion, according to the latest data from THP.

The database includes records of a vast 1,566 upcoming projects across the USA, comprising 298,620 keys.

Coastal dominance

Breaking the figures down state by state, we see that California tops the list in terms of projects, with at least 238 hotels under development, followed by Florida with 197.

However, for keys, this order is reversed, with the east coast state heading the tally with 45,965 as against its west coast counterpart on 44,495. Texas occupies the third spot in both analyses, with at least 135 projects comprising 26,552 rooms.

Big Apple appeal

By individual cities though, we see the tourist hub of New York City lead the way on development totals, with 49 sites underway. In runner-up placing, we have Los Angeles on 41 followed by Miami on 31 properties.

However, by key count, Las Vegas jumps to the top of the pile with 15,854 rooms under development, reflecting the entertainment capital’s penchant for megahotels. Miami is second by key total, on 12,202, with New York in third on 11,599.

Steady supply

Opening rates look to be steady in the next few years, with at least 371 properties becoming operational by the end of this year – equivalent to 24% of the current premium pipeline. A further 26% will deliver in 2024, representing 414 sites.

Another 226 projects are due to come to fruition in 2025, with the rate drastically dropping in 2026 to just 63 completions. The remaining 492 hotels are either expected to arrive further in the future or have yet to be designated a delivery date.

Flying four star

The four star segment is a massive 80% of the high end hotel pipeline in the USA, representing 1,248 sites, as against five stars’ 318 developments.

Unsurprisingly, with a glut of greenfield locations on offer across the country, newbuild hotels form a huge 76% of projects, totalling 1,195 properties. Refurbishments are underway within at least 178 sites, in comparison to 155 conversions and 38 extensions.

Big brand beasts

With regards to branded projects, the big US hotel group beasts dominate the domestic market, with Marriott International topping high end development listings on at least 260 projects. Hilton Worldwide is close behind on 243, with Hyatt Hotels Corporation in a fairly distant third on 81.

For individual brands, the extended stay Home2 Suites by Hilton is way ahead on at least 54 upcoming locations. Another Hilton brand, Hampton by Hilton, plus AC Hotels by Marriott share second place on at least 34 sites each.

Major projects

One significant project to look out for is Marriott’s The Ritz-Carlton, Paradise Valley, which is now due to arrive in Scottsdale, Arizona in Q3 this year after a number of delays. The 215-key hotel will be set within a 20 acre resort, which will consist of casita-style guestrooms and 20,000 sq ft of function space. It will also have a large destination spa and a citrus orchard and garden to grow seasonal produce for the onsite restaurants.

Another luxury build on the way is Mandarin Oriental Boca Raton in Florida. The 154-room property is scheduled to come online in Q4 this year as part of a twin tower mixed use development. The hotel will include a signature rooftop restaurant with an outdoor terrace and bar, a lobby lounge, a Mandarin Oriental cake shop, and a club lounge. Banqueting and meeting space will include a 4,500 sq ft ballroom and a variety of adaptable conference rooms. The Spa at Mandarin Oriental, a fitness centre and rooftop pool round out the amenities.