PORTSMOUTH, NH—According to the recent U.S. Construction Pipeline Trend Report from Lodging Econometrics, the franchise companies with the largest pipelines are Marriott (1,288 projects/166,096 rooms), Hilton (1,243 projects/140,912 rooms), and IHG (817 projects/84,676 rooms). These three franchise companies comprise 67 percent of all projects in the total hotel pipeline.
The largest brand for each of these companies is Marriott’s Fairfield Inn (283 projects/27,244 rooms), Hilton’s Home2 Suites (343 projects/35,845 rooms), and IHG’s Holiday Inn Express (426 projects/39,393 rooms).
The companies that added the most hotel projects to the pipeline in the first half of 2017 are Marriott (90 projects/11,085 rooms), IHG (73 projects/7,025 rooms), and Hilton (59 projects/6,097 rooms). These companies represent 62 percent of all the new projects that were announced.
Boston’s lodging market last year saw a drop in RevPAR for the first time after a six-year positive streak during which revenues exceeded the national average. Oversupply and a lighter convention schedule in 2016 may have played a role in hotel revenue declines that year. However, the trend does not appear to have carried over into 2017. In May, the city’s occupancy soared to nearly 90 percent and RevPAR saw an 11.2 percent increase on par with Orlando and Seattle markets. Read more about revenue growth in Boston’s hospitality market here.
Mobile travel trends are often associated with millennial travelers, but a recent Google Consumer Survey conducted by Skift challenges the idea that travelers under the age of 35 are driving mobile bookings. The survey showed that U.S. travelers between the ages of 35-54 booked via mobile more frequently. Read more.
More hotel rooms have been sold this cycle than ever before, and the demand is quickly increasing. Reasons for this growth include shifting consumer demographics that are adding more generations, digital tools making booking and finding hotels easier, and hotels selling rooms at more affordable prices. Read more.
According to a new report from the U.S. Travel Association, workers who begin their careers in travel and tourism go on to earn more than their peers who started out in other industries. In nearly 40 percent of cases, individuals who started their careers in travel industry jobs went on to earn an average salary of six figures or more. The report further indicates that the leisure and hospitality sector is the number-one small-business employer in the United States. This industry has been doing particularly well post-recession, with jobs increasing 17 percent between 2010 and 2016. Read more here.
Hotel industry experts at this week’s Southern Lodging Summit expressed concerns that Hurricane Harvey will impact performance in Texas and beyond. STR had forecasted that next year’s room supply and revenue per room would increase more than 2 percent, but storm damage could cancel out that growth. Read more.