In the most recent Construction Pipeline Trend Report for the United States (U.S.) from Lodging Econometrics (LE), at the close of 2022’s fourth quarter, the U.S. construction pipeline stands at 5,465 projects/650,626 rooms, up 14% by projects and 12% rooms Year-Over-Year (YOY).
In Q4, all stages of hotel construction in the U.S. experienced positive YOY growth. At the close of the quarter, there are 1,008 projects/135,492 rooms under construction, up 4% by projects and 3% rooms YOY. Projects scheduled to start construction in the next 12 months stand at 2,073 projects/235,222 rooms, up 14% by projects and 12% by rooms YOY. Projects and rooms in the early planning stage increased 18% and 17% YOY, respectively, reaching all-time high counts of 2,348 projects/279,912 rooms.
The 2023 outlook for the lodging industry looks strong, as it continues to recover from the lows experienced throughout the past two years. Although the U.S. and the hotel industry continue to face some economic challenges, travel and hotel bookings increased substantially during 2022 and the new construction pipeline in the U.S. continues to grow at a moderate pace with new project announcements and construction-starts increasing 35% YOY and 36% YOY, respectively. Hotel owners, investors, developers, and management groups see much opportunity in the year ahead.
At the end of the fourth quarter, brand conversion room counts reached record highs of 1,030 projects/102,162 rooms. The renovation pipeline also remained strong in Q4, reaching the highest project counts seen since Q1 2019, standing at 900 projects/148,105 rooms. Combined, renovation and conversion activity accounts for 1,930 projects/250,267 rooms, record-highs by projects and up 53% YOY by projects and 45% by rooms YOY.
Dallas, Atlanta lead the nation in hotel construction projects
The U.S. Markets with the greatest number of projects in the construction pipeline, at the end of the fourth quarter, are Dallas with 176 projects/20,790 rooms. Following are Atlanta with 145 projects/18,100 rooms, Los Angeles with 122 projects/19,419 rooms, Phoenix with 116 projects/16,229 rooms, and Nashville with 106 projects and 14,198 rooms.
Franchise companies topping the pipeline with the greatest project and rooms counts at Q4 are Marriott International with 1,490 projects/180,113 rooms, Hilton Worldwide with 1,378 projects/154,790 rooms, and InterContinental Hotels Group (IHG) with 789 projects/78,951 rooms.
The brands with the largest number of projects in the pipeline at Q4 close are Home2 Suites by Hilton, with 521 projects/53,735 rooms; Marriott’s TownePlace Suites with 320 projects/29,802 rooms; and InterContinental Hotels Group’s (IHG) Holiday Inn Express with 293 projects/27,817 rooms.
Throughout 2022, the U.S. opened 464 new hotels, accounting for 54,620 rooms, for a growth rate of 1.0%. LE analysts expect new hotel openings to increase in 2023 with 607 projects/72,665 rooms forecasted to open, representing a 1.3% supply increase; and in 2024, 722 projects/82,813 rooms are expected to open, for a 1.5% supply increase.
Related Stories
| Aug 11, 2010
RSMeans/RCD forecast 14% drop in hospital construction for 2009
RSMeans forecasts a 14% drop in hospital construction in 2009 compared to 2008, with $17.1 billion in registered hospital projects as of June 30, 2009. The Reed Construction Data unit finds renovation of healthcare facilities increasing, from 36% of projects in 2008, to 40% of projects in the pipeline in the first six months of 2009.
| Aug 11, 2010
The Joule Hotel
Dallas, Texas
The Joule Hotel in Dallas, designed by local firm Coburn & Smith, was constructed in 1927 as the Dallas National Bank Building. Originally one of the finest examples of gothic revival architecture in Texas, it had had most of its gothic elements removed over the years after being converted into an office building and later abandoned. What was left had fallen into disrepair.
| Aug 11, 2010
AECOM, WATG top BD+C's ranking of the nation's 75 largest hotel design firms
A ranking of the Top 75 Hotel Design Firms based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants
| Aug 11, 2010
ASHRAE introduces building energy label prototype
Most of us know the fuel efficiency of our cars, but what about our buildings? ASHRAE is working to change that, moving one step closer today to introducing its building energy labeling program with release of a prototype label at its 2009 Annual Conference in Louisville, Ky.
| Aug 11, 2010
RMJM unveils design details for $1B green development in Turkey
International architecture company RMJM today announced details of the $1 billion Varyap Meridian development it is designing in Istanbul’s new residential and business district, which will be one of the "greenest" projects in Turkey. The luxury 372,000-square-meter development on a site totalling 107,000 square meters will be located in the Atasehir district of Istanbul, which the Turkish government intends to transform into the country’s new financial district and business center.
| Aug 11, 2010
Urban Land Institute honors five 'outstanding' developments in Europe, Middle East, and Africa
Five outstanding developments have been selected as winners of the Urban Land Institute (ULI) 2009 Awards for Excellence: Europe, Middle East, and Africa (EMEA) competition. This year, the competition also included the announcement of two special award winners. The Awards for Excellence competition is widely regarded as the land use industry’s most prestigious recognition program.
| Aug 11, 2010
Cannon Design’s European-inspired Sparkling Hill Resort breaks ground
Cannon Design, a leading international architectural, engineering and planning firm, is pleased to announce that the firm’s Sparkling Hill Resort and Wellness Hotel in Vernon, BC, has broken ground.
| Aug 11, 2010
10 tips for mitigating influenza in buildings
Adopting simple, common-sense measures and proper maintenance protocols can help mitigate the spread of influenza in buildings. In addition, there are system upgrades that can be performed to further mitigate risks. Trane Commercial Systems offers 10 tips to consider during the cold and flu season.
| Aug 11, 2010
Skanska, Turner most active in U.S. hotel construction, according to BD+C's Giants 300 report
A ranking of the Top 50 Hotel Contractors based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants
