Dive Brief:

• The number of hotel rooms under construction or in the planning phase was 15% higher in October than in fall 2013, according to the 2014 STR Pipeline Report.

• Upscale and “upper midscale” hotels account for two-thirds of the development, the report said.

• According to Dodge Data & Analytics, hotel construction has increased sharply since 2011. The organization forecast that the building spree will continue into the new year.

Dive Insight:

As the economy recovers, businesses are rescinding their bans on work-related employee travel, and that has led to more demand for hotel rooms. Plus, construction of casinos—which often are attached to hotels—is on the rise, according to Robert A. Murray, chief economist and vice president of Dodge Data. And finally, major renovations—included in the sector's construction numbers—contributed significantly to the growth. The largest project last year was at the Korean Air Hotel in Los Angeles, where renovations cost $476 million.

An interesting side note: More than 43% of the hotel construction is green building, up from 38% in 2012.