In the second quarter of 2021, analysts at Lodging Econometrics (LE) report that the top franchise companies with the largest construction pipelines are: Marriott International with 1,301 projects/170,847 rooms, Hilton Worldwide with 1,216 projects/139,172 rooms, and InterContinental Hotels Group (IHG) with 777 projects/78,929 rooms. Development projects with these three franchise companies comprise 69% of all projects in the total construction pipeline.
The largest brands for each of these companies are Marriott’s Fairfield Inn with 257 projects/25,051 rooms, Hilton’s Home2 Suites by Hilton, with 379 projects/39,584 rooms and IHG’s Holiday Inn Express with 303 projects/29,055 rooms. These three brands make up 20% of the total construction pipeline rooms in the U.S.
Other high-volume brands in the pipeline for each of these franchises are Marriott’s TownePlace Suites with 198 projects/19,422 rooms and Residence Inn with 189 projects/23,493 rooms; Hilton’s Hampton by Hilton with 269 projects/28,071 rooms and Tru by Hilton with 235 projects/22,521 rooms; and IHG’s Avid Hotel with 157 projects/13,842 rooms and Staybridge Suites with 122 projects/12,607 rooms.
In the second quarter of 2021, LE recorded 583 conversion projects/63,807 rooms. Of these conversion totals, Best Western leads with 116 conversion projects/10,289 rooms, accounting for 20% of the conversion pipeline by projects. Following Best Western is Choice Hotels, Marriott International, and Hilton Worldwide. Best Western and these three franchise companies combined account for 61% of all the rooms in the conversion pipeline across the United States.
472 new hotels with 59,034 rooms opened across the United States during the first half of 2021. Marriott, Hilton, and IHG collectively opened 74% of the hotels. Marriott opened 152 hotels with 20,416 rooms, Hilton opened 125 hotels/16,970 rooms, and IHG opened 72 hotels/7,249 rooms.
Related Stories
Multifamily Housing | Feb 14, 2024
Multifamily rent remains flat at $1,710 in January
The multifamily market was stable at the start of 2024, despite the pressure of a supply boom in some markets, according to the latest Yardi Matrix National Multifamily Report.
Student Housing | Feb 13, 2024
Student housing market expected to improve in 2024
The past year has brought tough times for student housing investment sales due to unfavorable debt markets. However, 2024 offers a brighter outlook if debt conditions improve as predicted.
Contractors | Feb 13, 2024
The average U.S. contractor has 8.4 months worth of construction work in the pipeline, as of January 2024
Associated Builders and Contractors reported today that its Construction Backlog Indicator declined to 8.4 months in January, according to an ABC member survey conducted from Jan. 22 to Feb. 4. The reading is down 0.6 months from January 2023.
Industry Research | Feb 8, 2024
New multifamily development in 2023 exceeded expectations
Despite a problematic financing environment, 2023 multifamily construction starts held up “remarkably well” according to the latest Yardi Matrix report.
Market Data | Feb 7, 2024
New download: BD+C's February 2024 Market Intelligence Report
Building Design+Construction's monthly Market Intelligence Report offers a snapshot of the health of the U.S. building construction industry, including the commercial, multifamily, institutional, and industrial building sectors. This report tracks the latest metrics related to construction spending, demand for design services, contractor backlogs, and material price trends.
Industry Research | Jan 31, 2024
ASID identifies 11 design trends coming in 2024
The Trends Outlook Report by the American Society of Interior Designers (ASID) is the first of a three-part outlook series on interior design. This design trends report demonstrates the importance of connection and authenticity.
Apartments | Jan 26, 2024
New apartment supply: Top 5 metros delivering in 2024
Nationally, the total new apartment supply amounts to around 1.4 million units—well exceeding the apartment development historical average of 980,000 units.
Self-Storage Facilities | Jan 25, 2024
One-quarter of self-storage renters are Millennials
Interest in self-storage has increased in over 75% of the top metros according to the latest StorageCafe survey of self-storage preferences. Today, Millennials make up 25% of all self-storage renters.
Industry Research | Jan 23, 2024
Leading economists forecast 4% growth in construction spending for nonresidential buildings in 2024
Spending on nonresidential buildings will see a modest 4% increase in 2024, after increasing by more than 20% last year according to The American Institute of Architects’ latest Consensus Construction Forecast. The pace will slow to just over 1% growth in 2025, a marked difference from the strong performance in 2023.
Construction Costs | Jan 22, 2024
Construction material prices continue to normalize despite ongoing challenges
Gordian’s most recent Quarterly Construction Cost Insights Report for Q4 2023 describes an industry still attempting to recover from the impact of COVID. This was complicated by inflation, weather, and geopolitical factors that resulted in widespread pricing adjustments throughout the construction materials industries.
