As seen in the Lodging Econometrics (LE) Q4'21 United States Construction Pipeline Trend Report, the franchise companies with the largest U.S. construction pipelines at year-end 2021 are Marriott International with 1,345 projects/170,586 rooms, followed by Hilton Worldwide with 1,239 projects/141,053 rooms, and InterContinental Hotels Group (IHG) with 761 projects/76,987 rooms. These three companies combined account for 69% of the projects and 67% of the rooms in the total U.S. construction pipeline.
At the end of Q4'21, over 56% of Hilton’s projects in the pipeline are in the early planning project stage, a record-high by projects in this stage for the company, with 689 projects/76,058 rooms. Hilton has 228 projects/29,036 under construction at Q4 and 322 projects/35,959 rooms scheduled to start within the next 12 months. Marriott also hit a record high for both projects and rooms in early planning at the end of the fourth quarter, with 534 projects/63,120 rooms. Marriott has 262 projects, accounting for 38,289 rooms under construction at the end of Q4 and 549 projects/69,177 rooms are scheduled to start in the next 12 months. IHG currently has 121 projects, accounting for 11,376 rooms, in the early planning stage. 136 projects, with 16,221 rooms, in IHG’s pipeline, are in the under construction stage while 504 projects/49,390 rooms are scheduled to start within the next 12 months.
The leading brands by project count for the top three franchise companies continue to be Hilton’s Home2 Suites by Hilton with 421 projects/43,824 rooms, IHG’s Holiday Inn Express with 288 projects/27,620 rooms, and Marriott’s Fairfield Inn with 247 projects/23,344 rooms. These three brands dominate the pipeline and combined claim 20% of the projects.
Other notable brands in the pipeline for the top franchise companies at Q4 are Marriott’s TownePlace Suites with 239 projects/22,759 rooms and Residence Inn with 212 projects/25,896 rooms; Hilton’s Tru by Hilton brand with 222 projects/21,222 rooms and the Hampton by Hilton brand with 267 projects/27,577 rooms; and IHG’s Avid Hotel with 148 projects/12,885 rooms and Staybridge Suites with 124 projects/12,734 rooms.
Through year-end 2021, Marriott, Hilton, and IHG branded hotels represented 585 new hotel openings with 73,415 rooms. 201 of the hotels were Hilton brands, 267 were Marriott brands, and another 117 were IHG brands. The LE forecast for new hotel openings in 2022 anticipates that Marriott will open 207 projects/27,258 rooms, for a growth rate of 3.1%. Next is Hilton with 165 projects/18,764 rooms, for a growth rate of 2.5%, followed by IHG with 115 projects/12,397 rooms forecast to open for a growth rate of 2.9%. In 2023, Marriot is expected to open another 211 projects/25,056 rooms for a growth rate of 2.7%. LE predicts Hilton will open 173 projects/21,450 rooms, for a 2.8% growth rate by year-end 2023, while IHG is expected to see a 3.4% growth rate in 2023, with 148 new hotel projects, accounting for 15,146 rooms.
Related Stories
Architects | Jan 23, 2023
PSMJ report: The fed’s wrecking ball is hitting the private construction sector
Inflation may be starting to show some signs of cooling, but the Fed isn’t backing down anytime soon and the impact is becoming more noticeable in the architecture, engineering, and construction (A/E/C) space. The overall A/E/C outlook continues a downward trend and this is driven largely by the freefall happening in key private-sector markets.
Hotel Facilities | Jan 23, 2023
U.S. hotel construction pipeline up 14% to close out 2022
At the end of 2022’s fourth quarter, the U.S. construction pipeline was up 14% by projects and 12% by rooms year-over-year, according to Lodging Econometrics.
Products and Materials | Jan 18, 2023
Is inflation easing? Construction input prices drop 2.7% in December 2022
Softwood lumber and steel mill products saw the biggest decline among building construction materials, according to the latest U.S. Bureau of Labor Statistics’ Producer Price Index.
Market Data | Jan 10, 2023
Construction backlogs at highest level since Q2 2019, says ABC
Associated Builders and Contractors reports today that its Construction Backlog Indicator remained unchanged at 9.2 months in December 2022, according to an ABC member survey conducted Dec. 20, 2022, to Jan. 5, 2023. The reading is one month higher than in December 2021.
Market Data | Jan 6, 2023
Nonresidential construction spending rises in November 2022
Spending on nonresidential construction work in the U.S. was up 0.9% in November versus the previous month, and 11.8% versus the previous year, according to the U.S. Census Bureau.
Industry Research | Dec 28, 2022
Following a strong year, design and construction firms view 2023 cautiously
The economy and inflation are the biggest concerns for U.S. architecture, construction, and engineering firms in 2023, according to a recent survey of AEC professionals by the editors of Building Design+Construction.
Self-Storage Facilities | Dec 16, 2022
Self-storage development booms in high multifamily construction areas
A 2022 RentCafe analysis finds that self-storage units swelled in conjunction with metros’ growth in apartment complexes.
Market Data | Dec 13, 2022
Contractors' backlog of work reaches three-year high
U.S. construction firms have, on average, 9.2 months of work in the pipeline, according to ABC's latest Construction Backlog Indicator.
Contractors | Dec 6, 2022
Slow payments cost the construction industry $208 billion in 2022
The cost of floating payments for wages and invoices represents $208 billion in excess cost to the construction industry, a 53% increase from 2021, according to a survey by Rabbet, a provider of construction finance software.
Mass Timber | Dec 1, 2022
Cross laminated timber market forecast to more than triple by end of decade
Cross laminated timber (CLT) is gaining acceptance as an eco-friendly building material, a trend that will propel its growth through the end of the 2020s. The CLT market is projected to more than triple from $1.11 billion in 2021 to $3.72 billion by 2030, according to a report from Polaris Market Research.
