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 | Feb 17, 2021
Soaring prices and delivery delays for lumber and steel squeeze finances for construction firms already hit by pandemic
Association officials call for removing tariffs on key materials to provide immediate relief for hard-hit contractors and exploring ways to expand long-term capacity for steel, lumber and other materials,
Market Data | Feb 9, 2021
Construction Backlog and contractor optimism rise to start 2021, according to ABC member survey
Despite the monthly uptick, backlog is 0.9 months lower than in January 2020.
Market Data | Feb 9, 2021
USGBC top 10 states for LEED in 2020
The Top 10 States for LEED green building is based on gross square feet of certified space per person using 2010 U.S. Census data and includes commercial and institutional projects certified in 2020.
Market Data | Feb 8, 2021
Construction employment stalls in January with unemployment rate of 9.4%
New measures threaten to undermine recovery.
Market Data | Feb 4, 2021
Construction employment declined in 2020 in majority of metro areas
Houston-The Woodlands-Sugar Land and Brockton-Bridgewater-Easton, Mass. have worst 2020 losses, while Indianapolis-Carmel-Anderson, Ind. and Walla Walla, Wash. register largest gains in industry jobs.
Market Data | Feb 3, 2021
Construction spending diverges in December with slump in private nonresidential sector, mixed public work, and boom in homebuilding
Demand for nonresidential construction and public works will decline amid ongoing pandemic concerns.
Market Data | Feb 1, 2021
The New York City market is back on top and leads the U.S. hotel construction pipeline
New York City has the greatest number of projects under construction with 108 projects/19,439 rooms.
Market Data | Jan 29, 2021
Multifamily housing construction outlook soars in late 2020
Exceeds pre-COVID levels, reaching highest mark since 1st quarter 2018.
Market Data | Jan 29, 2021
The U.S. hotel construction pipeline stands at 5,216 projects/650,222 rooms at year-end 2020
At the end of Q4 ‘20, projects currently under construction stand at 1,487 projects/199,700 rooms.
Multifamily Housing | Jan 27, 2021
2021 multifamily housing outlook: Dallas, Miami, D.C., will lead apartment completions
In its latest outlook report for the multifamily rental market, Yardi Matrix outlined several reasons for hope for a solid recovery for the multifamily housing sector in 2021, especially during the second half of the year.