In the recently released quarterly United States Construction Pipeline Trend Report from Lodging Econometrics (LE), the franchise companies with the largest construction pipelines at the end of the second quarter of 2020 are Marriott International with 1,487 projects/195,952 rooms, followed by Hilton Worldwide with 1,395 projects/160,078 rooms, and InterContinental Hotels Group (IHG) with 920 projects/94,499 rooms. Combined these three companies account for 68% of the projects in the total pipeline; roughly the same percentage as the Q1’20 close.
Hilton’s Home2 Suites and IHG’s Holiday Inn Express continue to be the most prominent brands in the U.S. pipeline with 415 projects/43,336 rooms and 371 projects/35,539 rooms, respectively. Hampton by Hilton follows with 304 projects/31,365 rooms and then Marriott’s Fairfield Inn with 302 projects/29,251 rooms. These four brands combined represent an impressive 25% of the projects in the total pipeline.
Other notable brands in the pipeline for each of these franchise companies are Tru by Hilton with 298 projects/28,863 rooms; Marriott’s Residence Inn with 208 projects/25,520 rooms, SpringHill Suites with 184 projects/20,842 rooms, and TownePlace Suites with 207 projects/20,802 rooms; and then IHG’s Avid Hotel with 189 projects/17,090 rooms.
In the second quarter of 2020, LE recorded 580 conversion projects/66,852 rooms. Of these conversion totals, Best Western dominates with 150 conversion projects/13,482 rooms, alone claiming 25% of the conversion pipeline by projects. Following Best Western is Marriott with 79 projects/13,721 rooms, Hilton has 69 projects/11,279 rooms, and IHG recorded 50 projects/5,382 rooms. Best Western and these three franchise companies combined account for 66% of all the rooms in the conversion pipeline across the United States.
In the first half of 2020, 313 new hotels with 36,992 rooms opened across the United States. Of those openings, Marriott, Hilton and IHG collectively opened 69% of the hotels. Marriott opened 90 hotels 11,036 rooms, Hilton opened 82 hotels/8,728 rooms, and IHG opened 44 hotels/4,190 rooms.
Related Stories
Market Data | Feb 4, 2020
Construction spending dips in December as nonresidential losses offset housing pickup
Homebuilding strengthens but infrastructure and other nonresidential spending fades in recent months, reversing pattern in early 2019.
Market Data | Feb 4, 2020
IMEG Corp. acquires Clark Engineering
Founded in 1938 in Minneapolis, Clark Engineering has an extensive history of public and private project experience.
Market Data | Jan 30, 2020
U.S. economy expands 2.1% in 4th quarter
Investment in structures contracts.
Market Data | Jan 30, 2020
US construction & real estate industry sees a drop of 30.4% in deal activity in December 2019
A total of 48 deals worth $505.11m were announced in December 2019.
Market Data | Jan 29, 2020
Navigant research report finds global wind capacity value is expected to increase tenfold over the next decade
Wind power is being developed in more countries as well as offshore and onshore.
Market Data | Jan 28, 2020
What eight leading economists predict for nonresidential construction in 2020 and 2021
Public safety, education, and healthcare highlight a market that is entering growth-slowdown mode, but no downturn is projected, according to AIA's latest Consensus Construction Forecast panel.
Market Data | Jan 28, 2020
Los Angeles has the largest hotel construction pipeline in the United States
Los Angeles will have a growth rate of 2.5% with 19 new hotels/2,589 rooms opening.
Market Data | Jan 27, 2020
U.S. hotel construction pipeline finishes 2019 trending upward
Projects under construction continue to rise reaching an all-time high of 1,768 projects.
Market Data | Jan 24, 2020
U.S. Green Building Council releases the top 10 states for LEED
Colorado leads the nation, showing how LEED green buildings support climate action and a better quality of life.
Market Data | Jan 23, 2020
Construction contractor confidence surges into 2020, says ABC
Confidence among U.S. construction industry leaders increased in November 2019 with respect to sales, profit margins, and staffing, according to the Associated Builders and Contractors Construction Confidence Index.
