Dive Brief:

• More than 128,000 hotel rooms are under construction and 426,043 are under contract, according to the June 2015 STR Pipeline Report.

• The benchmarking firm reported that the number of rooms under contract in the U.S. rose 11.1% last month when compared with June 2014, and the quantity of units under construction increased 20.9%.

• Luxury hotels are at the front of the building boom, with a 46.5% increase in the number of high-end rooms under contract when compared with June 2014. “Upper upscale” hotels — a rung below “luxury” — saw a 30.5% increase in contracts year-over-year, the report said.

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Dive Insight:

Still, not every segment of the hotel industry is bursting at the seams: Fewer economy hotels are under contract, and fewer midscale rooms are under construction this June than last.

In fact, the hotel industry had a few challenging years, as the slow economy grounded the tourists and business travelers who create the demand for rooms. But 2015 has been a good year: Market research organization IBISWorld has predicted the industry is expected to grow by 12.3% this year.