At the end of Q4 2009, the total Construction Pipeline for EMEA has 1,373 projects/285,770 rooms. Pipeline counts have now declined 22% by projects and 23% by rooms since the Q2 2008 peak. They are expected to decline further, as concerns about the pace of economic recovery, the industry’s operating performance and lending issues persist and continue to impact developer sentiment.
Depleted by high cancellations and a late surge in New Openings, total Pipeline counts are in an end-of-cycle contraction. In 2009, total Cancellations/Postponements in EMEA removed nearly 96,000 rooms from the Pipeline. As the lending environment is not expected to rebound any time soon, Cancellations/Postponements will likely remain high for the near-term. New Hotel Openings coming online as additional supply will stay at an elevated rate, particularly in the Middle East and Africa, where New Openings will accelerate through 2011.
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