According to the recent U.S. Construction Pipeline Trend Report from Lodging Econometrics, three franchise companies comprise 69 percent of all projects in the total pipeline. These three franchise companies with the largest hotel construction pipelines are: Marriott with 1,410 projects/180,647 rooms, Hilton with 1,287 projects/144,958 rooms, and IHG with 831 projects/84,865 rooms.
The largest brands for each of these companies are: Marriott’s Fairfield Inn with 303 projects/29,051 rooms and TownePlace Suites with 208 projects/21,299 rooms; Hilton’s Home2 Suites with 355 projects/37,188 rooms and Hampton Inn & Suites with 314 projects/32,386 rooms; and IHG’s Holiday Inn Express with 444 projects/41,343 rooms and Staybridge Suites with 135 projects/14,124 rooms.
By the close of 2018, Marriott is forecasted to open 351 projects/43,587 rooms, Hilton is set to open 294 projects/32,192 rooms, and IHG expects 174 projects/17,982 rooms to open. Marriott also leads in new openings for 2019 with 362 projects/44,624 rooms, IHG is anticipating 272 projects/26,983 rooms and Hilton expects 253 projects/28,584 rooms to open next year.
PORTSMOUTH, NH—Marriott International currently has the largest hotel construction pipeline of any franchise company in the United States with 1,410 projects totaling 180,647 rooms, according to Lodging Econometrics. The biggest brands in the company’s pipeline are: Fairfield Inn with 303 projects/29,051 rooms; Residence Inn with 199 projects/24,680 rooms, and TownePlace Suites with 208 projects/21,299 rooms.
In addition to the largest pipeline, Marriott has the most rooms currently under construction nationwide. The company’s 502 projects with a total of 68,119 rooms currently under construction represent more than a third of all the hotel rooms under construction in the total U.S. pipeline. The company also has the most rooms scheduled to start construction in the next 12 months—83,993 rooms across 668 projects. Marriott has an additional 240 projects/28,535 rooms in early planning stages—almost double the number of projects it had in this stage at the end of 2016.
Marriott is forecasted to open 351 new hotels with 43,587 rooms in 2018, accounting for 31 percent of all new hotels anticipated to open this year. The Marriott brands with the largest number of new hotels expected to open by year-end are Fairfield Inn with 81 hotels/7,739 rooms and Towneplace Suites with 58 hotels/5,774 rooms.
According to the year-end U.S. Construction Pipeline Trend Report from Lodging Econometrics, the nation’s hotel construction pipeline stood at 5,151 projects/623,695 rooms at the end of 2017, up 4 percent by projects year-over-year (YOY).
The number of projects under construction nationwide at the year’s end—1,544 projects and 200,632 rooms—was up 2 percent since year-end 2016. The number of projects scheduled to start construction in the next 12 months stood at 2,101 projects/245,214 rooms—down 12 percent by projects YOY.
The number of projects in the early planning stage is at 1,506 projects/177,849 rooms, up 44 percent by projects YOY. The rapid growth of new brands announced by major franchise companies in 2017 contributed to the increase in projects in the early planning stage. Lodging Econometrics analysts also pointed out that the end of the year tends to encourage developers and brands to finalize franchise construction agreements and review timelines on existing agreements, which both contribute to an uptick in project recorded in the early planning stage.
Despite the slight deceleration of the pipeline’s overall growth observed over the past several quarters, Lodging Econometrics analysts said that the total pipeline continued its upward growth trend through the end of 2017.
American Hotel & Lodging Association (AHLA) president and CEO Katherine Lugar yesterday pledged to partner with U.S. mayors to strengthen communities, build a modern, dynamic workforce, and give travelers world-class experiences in their cities. Speaking at the U.S. Conference of Mayors’ (USCM) annual winter meeting in Washington, D.C., Lugar highlighted the hotel industry’s contributions to local economies and workforce development. Read more.
Forty-five year hospitality veteran David Gabri will retire from chairman of Associated Luxury Hotels International (ALHI) effective March 1. Although retiring, Gabri will still be involved with the company’s board of directors. In his time at ALHI, Gabri created original concepts for select independent luxury hotels and resorts.
For more of this week’s notable hospitality comings and goings, click here.
Sam Woodworth is taking on the newly created position of director of acquisitions and business development for Hospitality Ventures Management Group (HVMG). The position requires Woodworth to grow the portfolio through development deals and third-party management. Before HVMG, Woodworth served as manager of acquisitions and development for Trump Hotels.
For a look at other notable comings and goings that took place this week, click here.