Once again, the bond markets flashed a major warning sign in February that the long economic expansion may soon end in a recession. But hotel developers—looking at other economic indicators and strong industry fundamentals—see strong demand and are plowing ahead with construction on new hotel projects. In fact, developers now have more new hotel rooms under construction than any other time in the last decade.
There are more than 1,500 hotels under construction, representing about 200,200 rooms, with completion dates scheduled through 2023, according to a count from Marcus and Millichap. That's up from 191,800 at the start of 2019, 180,000 at the start of 2018 and 126,200 in early 2015.