Analysts at Lodging Econometrics report that China’s total hotel construction pipeline has increased 7 percent year-over-year (YOY) and now has 2,410 hotel projects totaling 525,225 rooms. The number of rooms under construction is up 4 percent by projects YOY (1,724 projects/356,816 rooms) and the number of projects that are scheduled to start construction in the next 12 months is up 15 percent YOY (324 projects/74,225 rooms). The number of projects in early planning phases increased by a smaller margin by 2 percent (362 projects/94,184 rooms).
The top hotel companies in China’s construction pipeline are Hilton Worldwide with 292 projects/71,895 rooms, Marriott International with 253 projects/72,062 rooms, and InterContinental Hotels Group (IHG) with 206 projects/56,354 rooms. The largest brand in the pipeline for each of these companies is Hilton’s Hampton Inn & Suites with 113 projects/17,130 rooms, Marriott’s full-service hotel with 51 projects/16,227 rooms, and IHG’s Holiday Inn Express with 62 projects/13,929 rooms.
Cities in China with the largest pipelines are Shanghai with 120 projects/23,941 rooms, Guangzhou with 113 projects/21,890 rooms, Chengdu with 93 projects/20,865 rooms, Suzhou with 87 projects/17,048 rooms, and Beijing with 82 projects/13,919 rooms.
In the first half of the year, the U.S. hotel construction pipeline included 1,288 extended-stay projects totaling 136,649 rooms, according to Lodging Econometrics. More extended-stay hotels are expected—400 extended-stay projects with 44,738 rooms are under construction and account for 26 percent of all construction projects in the total hotel pipeline. What’s more, 643 projects/68,242 rooms will start construction in the next 12 months and an additional 245 projects/23,669 rooms are in the early planning stages.
At year-end 2017, 248 extended-stay hotels with a combined 27,431 rooms are expected to open in the U.S., compared to 224 extended-stay hotels/24,196 rooms last year. In 2018, the number of extended-stay projects is expected to increase to 329/35,705 rooms and in 2019, 365 extended-stay projects/39,087 rooms are forecast to open.
The largest extended-stay brand in the pipeline is Home2 Suites by Hilton, which currently has 343 projects/35,845 rooms in the pipeline. The second largest is Marriott’s Residence Inn with 187 projects/23,617 rooms, followed by Towneplace Suites with 184 projects/18,757 rooms.
While Hurricane Irma devastated much of Florida, the city of Miami weathered the storm and fared better than originally forecasted. Most of the hotels in the city didn’t lose power, while flood waters never breached the dunes of Miami Beach, though there was some beach erosion. The city is projected to have most businesses up and running again today or tomorrow. Beach rehabilitation will likely be finished mid-week as well. Closed roadways should reopen shortly, though some are already allowing traffic. To read more, click here.
Hurricane Irma bore down on Orlando, Fla., early this morning. While Orlando residents are somewhat used to dangerous storms, this one was a different animal entirely, causing many residents to seek shelter at local hotels. For Florida-based Rosen hotels, about 20 percent of guests at their Orlando properties were local residents, with a further 2,000 rooms occupied by power companies and the American Red Cross. Many residents were worried about wind and flooding, and believed that a hotel would offer a sturdier shelter than their homes. Read more.
Analysis from design firm Ideo found that guests eat just about half of food on a hotel buffet and only up to 15 percent of those leftovers are fit for donation or repurposing due to safety regulations. That means that much of hotel buffet food ends up in the trash. Read how hotels are working to change this reality here.
Hotels are changing their approach to hiring and retaining college students in hopes of keeping them on as full-time employees. Some hotels offer flexible scheduling to work around students’ classes while others provide valuable training to help students develop skill sets that are applicable in other industries. Read more.