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
Market Data | May 29, 2018
America’s fastest-growing cities: San Antonio, Phoenix lead population growth
San Antonio added 24,208 people between July 2016 and July 2017, according to U.S. Census Bureau data.
Market Data | May 25, 2018
Construction group uses mobile technology to make highway work zones safer
Mobile advertising campaign urges drivers who routinely pass through certain work zones to slow down and be alert as new data shows motorists are more likely to be injured than construction workers.
Market Data | May 23, 2018
Architecture firm billings strengthen in April
Firms report solid growth for seven straight months.
Market Data | May 22, 2018
Vacancies stable, rents rising, and pipeline receding, according to Transwestern’s 1Q US Office Market report
The Big Apple still leads the new construction charge.
Market Data | May 18, 2018
Construction employment rises in 38 states and D.C. from April 2017 to April 2018
California & West Virginia have biggest annual job gains, North Dakota has largest decline; California & Louisiana have largest monthly pickup, Indiana & North Dakota lead monthly drops.
High-rise Construction | May 18, 2018
The 100 tallest buildings ever conventionally demolished
The list comes from a recent CTBUH study.
Resiliency | May 17, 2018
Architects brief lawmakers and policy-makers on disaster recovery as hurricane season approaches
Urge senate passage of disaster recovery reform act; Relationship-building with local communities.
Market Data | May 17, 2018
These 25 cities have the highest urban infill development potential
The results stem from a COMMERCIALCafé study.
Market Data | May 10, 2018
Construction costs surge in April as new tariffs and other trade measures lead to significant increases in materials prices
Association officials warn that the new tariffs and resulting price spikes have the potential to undermine benefits of tax and regulatory reform, urge administration to reconsider.
Market Data | May 7, 2018
Construction employers add 17,000 jobs in April and 257,000 for the year
Unemployment rate for construction increases slightly compared to year earlier as higher pay levels appears to be attracting people with recent construction experience back into the workforce.
