In today’s construction news, read about how, in Q4, the pipeline reached a record number of projects, adding 260 projects and 21,287 rooms over the previous quarter. Year-over-year (YOY), the rise in projects was 9% and in rooms was 7%. With 5,883 projects, Q2 2008 was the previous project count high. Meanwhile, during the Wisconsin Department of Transportation’s annual Contractor-Engineer Conference this week in Wisconsin Dells, six Wisconsin construction companies were recognized with Excellence in Construction Awards. Lastly, a nearby company is submitting a petition opposing a significant building project along US-19. Although the renovation is meant to improve safety and traffic flow, business owners have expressed concern about it.
As Q4 Closes, the Number of Projects in the U.S. Hotel Construction Pipeline Reaches an All-time High
Lodging Econometrics (LE)’s 2023 year-end U.S. Construction Pipeline Trend Report shows 5,964 projects/693,963 rooms. The pipeline reached record project numbers in Q4, adding 260 projects and 21,287 rooms over last quarter and 9% and 7% year-over-year. The previous high was 5,883 projects in Q2 2008.
The fourth quarter of 2023 saw 1,118 projects/141,768 rooms under development, up 11% and 5%, respectively. Projects starting in the next year total 2,259/261,582 rooms, up 9% and 11% YOY. Projects and rooms under early planning reached record highs of 2,587 projects/290,613 rooms in Q4, up 9% and 4% YOY.
The upper midscale segment has the most projects of all chain scales in the U.S. building pipeline with 2,245 projects/218,112 rooms at Q4 end. Upscale has 1,445 projects/177,999 rooms, second largest. These two chain scales make up 62% of the country’s pipeline at Q4 closure.
U.S. hotel development is optimistic yet cautious after the Federal Reserve announced three 25-basis-point interest rate decreases in 2024 and 2025. With repeated rate decreases expected in 2024, hotel development should continue to increase. Long-awaited interest rate relief is due to lower borrowing costs. This should boost new construction, purchases, renovations, and conversions. Despite the good outlook, lenders remain wary and investors “wait and see” for more rate decreases. The pipeline figures and record-high project counts indicate that this cautious, optimistic attitude will most likely persist into 2024, but we anticipate investors to engage once more. Lending volume should rise moderately in the first half of 2024 and then accelerate in the second half.
Adding 474 hotels/60,436 rooms in 2023 brought the U.S. census to 59,636 hotels/5,655,356 rooms, a 1.1% increase. LE experts predict 677 new hotels and 79,518 rooms to expand U.S. hotel supply by 1.4% in 2024. Another 799 new hotels/85,654 rooms are expected to open by year-end 2025 and more in 2026 and beyond, according to the LE estimate.
The 2023 Excellence in Construction Awards are announced by WisDOT
Original Source: WisDOT Announces 2023 Excellence In Construction Awards
This week in Wisconsin Dells, the Wisconsin Department of Transportation’s annual Contractor-Engineer Conference awarded Excellence in Construction to six Wisconsin construction companies.
A Polk County asphalt paving project, a Dane County concrete paving project, an Outagamie County grading project, a Lafayette County small bridge project, a Racine County major bridge project, and a Milwaukee County large contract project won.
“We are extremely proud of the work over the past five years to improve more than 7,400 miles of roadway and 1,780 bridges in Wisconsin,” announced WisDOT Secretary Craig Thompson. Our strategic transportation investments in every county in the state are shown by these honors. In collaboration with industry partners, we are improving safety, mobility, and quality of life for all.”
WisDOT Bureau of Project Development director Michael Hoelker said, “We are grateful for the strong working relationships with many skilled contracting firms to help make our transportation system safer and more reliable for millions of people across Wisconsin.” “We recognize quality work and embrace innovations that save time and money at the annual Excellence in Construction Awards.”
Monarch Paving of Amery won the Excellence in Asphalt Paving award for work on US 63 from St. Croix County to Polk County J. Over eight miles of US 63 pavement were restored and some junctions were geometrically safer. The project finished two weeks early due to contractor teamwork despite tight scheduling.
Marshfield-based Trierweiler Construction won the Excellence in Concrete Paving award for work on Blair Street between Williamson Street and East Washington Avenue in Madison, Dane County. Some of downtown Madison’s Business US 151 was rebuilt in this project. The project’s schedule depended on concrete pavement, thus Trierweiler worked with project workers to maximize efficiency in all areas.
The Princeton-based Mashuda Construction, Inc. won the Excellence in Grading award for its work on the WIS 15 project between US 45 in New London and Lily of the Valley Drive in Greenville, Outagamie County. Two years were spent reconstructing 3.6 miles of WIS 15 from two to four lanes Traffic staging affected construction access, thus companies and residents needed to communicate well. The project made cost-effective decisions while staying on track due to close teamwork.
Plain-based Kraemer North America won for the WIS 23 bridge across the Pecatonica River in Lafayette County. Bridge repair included replacing the superstructure and wingwalls and adding sidewalks, steel railing, decorative lighting, and a polymer overlay to the bridge surface. Due to the project’s geometry and environmental requirements, the contractor and crew had to work together to succeed.
Big-structure expertise The Jefferson Street bridge over the Fox River in Racine County was awarded to Waukesha-based Zenith Tech Inc. Burlington’s Jefferson Street bridge was replaced with a 3-span slab construction, and the riverwalk was improved. Opening communication and good collaboration with all stakeholders helped the project finish on time despite spring flooding and foundation soil concerns.
Big Contract – Michels Road & Stone Inc., of Brownsville, won for its work on the Zoo Interchange North Leg, along US 45 between Swan Boulevard and Burleigh Street in Milwaukee County. The project restored the North Avenue intersection and increased approximately two miles of highway from three to four lanes in each direction. Managing interim traffic patterns was crucial to the project’s long-term performance during three building seasons. Michels supported the department in completing this complicated project on time, within budget, and with minimal public interruption.
A Pinellas County Company Starts a Petition in Reaction to a Significant US-19 Construction Project
A local business is opposing a big US-19 building project.
The construction is meant to improve traffic flow and safety, but business owners are worried.
Spencer Gill, Pelican Car Wash proprietor, began the petition.
He and other US-19 business owners say a large construction project is making it harder for customers to visit their establishments.
“The median blocks a turn lane for several hundred yards. Gill reported southbound traffic had dropped significantly.
The $242 million construction project from State Road 580 to North of Curlew Road creates new interchanges and improves traffic flow, according to the Florida Department of Transportation.
Spencer said the endeavor is costing him 200 clients per week.
“Now, for us, that’s a big amount because we rely heavily on the local support of people in the area, and if it’s not convenient to make it to the car wash, it’s just tough,” Gill said.
Gill’s petition asks the state to compensate local companies for financial losses.
“To make sure that during the interim of this construction, the local businesses are being thought for, cared for,” Gill added.
He and Music and Cinema employee Lisa Duclon agree that something needs to be done.
“We used to get a lot of overflow from the car wash, and because their traffic has slowed down, ours has as well,” Duclon.
Even though customers have dropped, business owners say this section of road is safer with fewer accidents.”
Gill and Duclon estimated at least three wrecks occurred daily on US-19 before the renovation.
No doubt, it’s necessary. “We know this construction is important,” added Gill.
Gill and Duclon hope their enterprises survive.
“It’s great to keep the community within the community, the business, and keep trying to support the local businesses around the area,” Duclon.
We informed the Florida Department of Transportation. The petition was not addressed, but construction is happening day and night to meet deadlines.
Summary of today’s construction news
To sum it up, the United States had 474 new hotels with 60,436 rooms open in 2023, representing a 1.1% growth rate in new supply and increasing the total number of hotels to 59,636 with 5,655,356 rooms. With another 799 new hotels with 85,654 rooms expected to open by year’s end in 2025 and more growth predicted for 2026 and beyond, the LE estimate for new hotel openings indicates that this growth trajectory will continue through 2025.
Meanwhile, a few of the top projects are a grading project in Outagamie County, a huge contract job in Milwaukee County, a modest bridge project in Lafayette County, a large bridge project in Racine County, and an asphalt paving project in Polk County. Contractors from Dane, Lafayette, Outagamie, Milwaukee, Polk, and Racine counties were recognized for their work.
Lastly, Gill and Duclon are hoping that their enterprises can survive in the interim. We brought up the problem with the Florida Department of Transportation. It stated that in order to meet deadlines, construction is happening day and night and that it did not respond to the petition.