�As the industry is experiencing a somewhat better than expected rebound, Pipeline totals may be at or near a bottoming,� said LE President Patrick H. Ford.

For the first time in its Quarterly client report, LE examined the entire Supply Side of the industry. In addition to the Development Pipeline, LE issued a Calendar of Scheduled Completions for the Pipeline as it is presently announced. Scheduled Completions are detailed by Chain Scale, Brand and Company and for each Market. Combined with the Census of Open and Operating Hotels, measurements for market share and penetration were also reported.

�The Pipeline changes minute to minute,� said Ford. �Cancellations and construction delays will occur and a few new projects will be added, but our calendar based on an industry-wide empirical build up of projects should provide improved guidance about the pace of future guestroom additions.�

Ford estimates that the industry will open around 80,000 new rooms this year and once closed projects are subtracted from the census, it will represent 1.8% increase in supply.

Key points for 1Q included:

• Modest Pipeline Declines were apparent across nearly all Development Stages and Chain Scales, except for Construction Starts in the Next 12 Months in Upper Upscale, which increased by 11 projects and 4,991rooms.
• 175 new hotels having 21,269 rooms opened in the quarter.
• Total Rooms Under Construction declined to 98,094, down 9.6% from the previous quarter.
• 170 projects and 22,470 rooms were either cancelled or postponed, the lowest total since operating statistics started their cyclical declines.
• Down from 349 projects having 34,036 rooms in 4Q01, 284 new project announcements, with 37,377 rooms entered the Pipeline, including, significantly, 15 large projects with over 6,400 rooms and two new casino announcements having a total of 2,550 rooms.
• Project Construction Starts during 1Q were only 115, down from 194 in the previous quarter.

Start in the next 12 months. Activity like this is typical for the late stage of a construction cycle and although declining, could serve to moderate the industry�s total operating statistics used for measuring the overall recovery. Other sectors of the industry are scheduled for proportionately less new construction and are also recovering at a quicker pace, according to Ford.