According to the third quarter Construction Pipeline Trend Report for the United States from Lodging Econometrics (LE), the U.S. construction pipeline stands at 5,317 projects/629,489 rooms, up 10% by projects and 6% rooms Year-Over-Year (YOY).
At the close of Q3, there are 987 projects/135,050 rooms under construction in the U.S. Projects scheduled to start construction in the next 12 months, stand at 2,074 projects/236,894 rooms, up 14% by projects and 13% by rooms YOY, respectively. Project counts in the early planning stage reached record highs, in Q3, standing at 2,256 projects/257,545 rooms, a 14% increase by projects and 7% increase in rooms YOY.
The lodging industry is healthy, and many hotel owners are expected to experience record high revenues in 2022. As lending rates have changed significantly in 2022 due to the Federal Reserve’s rate increases, ownership and management groups are finding that reinvesting in their current portfolios, whether that be renovating or repositioning to another brand, is a better return on investment right now. At the end of Q3 2022, brand conversion room counts reached record highs of 988 projects/99,474 rooms. The renovation pipeline remained strong as well, with 893 projects/140,440 rooms; some of the highest counts dating back to Q3 2018. Combined, renovation and conversion activity accounts for 1,881 projects/239,914 rooms, up 36% YOY by projects and 50% by rooms YOY.
Travel throughout the U.S., in all segments, saw steady recovery over the summer months and is expected to continue into the fall and winter months. New project announcements and construction starts continue to recover from the lows experienced during the COIVD pandemic. The new construction pipeline in the U.S. continues to grow, albeit, at a moderate, modest pace, with projects in the early planning stage establishing a new peak for this cycle. This peak signals a favorable outlook by developers for development conditions to improve in the near future.
The upper midscale chain scale continues to have the largest project count of all chain scales in the total U.S. construction pipeline at Q3, standing at 2,127 projects/214,473 rooms. Following upper midscale, is upscale which stands at 1,528 projects/202,907 rooms at the close of the quarter. Together, upper midscale and upscale project counts in the pipeline account for 69% of all projects.
The brands with the largest number of projects in the upper midscale chain scale are Home2 Suites by Hilton with 494 projects/50,809 rooms; InterContinental Hotels Group’s (IHG) Holiday Inn Express 297 projects/28,323 rooms; and Marriott’s TownePlace Suites with 291 projects/27,329 rooms. In the upscale chain scale, the top brands are Marriott’s Residence Inn with 234 projects/28,659 rooms, and its SpringHill Suites brand with 148 projects/16,350 rooms, followed by IHG’s Staybridge Suites with 125 projects/12,962 rooms.
At the end of Q3 ’22, 1,846 projects/189,289 rooms in the U.S. Construction Pipeline are extended stay projects; accounting for 35% of projects in the total U.S. pipeline. Home2 Suites by Hilton currently has the largest extended stay pipeline with 494 projects/50,809 rooms. The brand with the second largest number of projects in the extended stay pipeline at Q3 2022, is Marriott’s TownePlace Suites with 291 projects/27,329 rooms, followed by its Residence Inn brand with 234 Projects/28,659 Rooms.
Thus far, throughout 2022, the U.S. opened 343 new hotels, accounting for 39,772 rooms, with another 182 projects/22,261 rooms anticipated to open by the end of the year. This represents a 1.1% increase in new hotel supply for 2022. LE analysts expect new hotel openings to increase in 2023 and 2024, representing a 1.3% supply increase for 2023 and a 1.4% supply increase for 2024.
Related Stories
| Aug 11, 2010
AIA Course: Historic Masonry — Restoration and Renovation
Historic restoration and preservation efforts are accelerating throughout the U.S., thanks in part to available tax credits, awards programs, and green building trends. While these projects entail many different building components and systems, façade restoration—as the public face of these older structures—is a key focus. Earn 1.0 AIA learning unit by taking this free course from Building Design+Construction.
| Aug 11, 2010
AIA Course: Enclosure strategies for better buildings
Sustainability and energy efficiency depend not only on the overall design but also on the building's enclosure system. Whether it's via better air-infiltration control, thermal insulation, and moisture control, or more advanced strategies such as active façades with automated shading and venting or novel enclosure types such as double walls, Building Teams are delivering more efficient, better performing, and healthier building enclosures.
| Aug 11, 2010
Glass Wall Systems Open Up Closed Spaces
Sectioning off large open spaces without making everything feel closed off was the challenge faced by two very different projects—one an upscale food market in Napa Valley, the other a corporate office in Southern California. Movable glass wall systems proved to be the solution in both projects.
| Aug 11, 2010
High School in a Hurry
One of the more compelling arguments for charter schools is their theoretical ability to streamline decision making. Eliminate all those layers of bureaucratic fat that clog the arteries of most public school systems, the argument goes, and decisions can be made to flow much more smoothly, even when it comes to designing and building a major school project.
| Aug 11, 2010
Right-Sizing Healthcare
Over the past 30 years or so, the healthcare industry has quietly super-sized its healthcare facilities. Since 1980, ORs have bulked up in size by 53%, acute-care patient rooms by 77%. The slow creep went unlabeled until recently, when consultant H. Scot Latimer applied the super-sizing moniker to hospitals, inpatient rooms, operating rooms, and other treatment and administrative spaces.
| Aug 11, 2010
Silver Award: Pere Marquette Depot Bay City, Mich.
For 38 years, the Pere Marquette Depot sat boarded up, broken down, and fire damaged. The Prairie-style building, with its distinctive orange iron-brick walls, was once the elegant Bay City, Mich., train station. The facility, which opened in 1904, served the Flint and Pere Marquette Railroad Company when the area was the epicenter of lumber processing for the shipbuilding and kit homebuilding ...
| Aug 11, 2010
Special Recognition: Durrant Group Headquarters, Dubuque, Iowa
Architecture firm Durrant Group used the redesign of its $3.7 million headquarters building as a way to showcase the firm's creativity, design talent, and technical expertise as well as to create a laboratory for experimentation and education. The Dubuque, Iowa, firm's stated desire was to set a high sustainability standard for both itself and its clients by recycling a 22,890-sf downtown buil...
| Aug 11, 2010
Hilton President Hotel
Once an elegant and fashionably trendy locale, the Presidential Hotel played host to the 1928 Republican National Convention where Herbert Hoover was nominated for President, and acted as a hot spot for Kansas City Jazz in the '30s and '40s. The hotel was eventually abandoned in 1984, at which point it became a haven for vagabonds and pigeons, collecting animal waste and incurring significant s...
| Aug 11, 2010
Bowing to Tradition
As the home to Harvard's Hasty Pudding Theatricals—the oldest theatrical company in the nation—12 Holyoke Street had its share of opening nights. In April 2002, however, the Faculty of Arts and Sciences decided the 1888 Georgian Revival building no longer met the needs of the company and hired Boston-based architect Leers Weinzapfel Associates to design a more contemporary facility.
| Aug 11, 2010
AIA course: MEP Technologies For Eco-Effective Buildings
Sustainable building trends are gaining steam, even in the current economic downturn. More than five billion square feet of commercial space has either been certified by the U.S. Green Building Council under its Leadership in Energy and Environmental Design program or is registered with LEED. It is projected that the green building market's dollar value could more than double by 2013, to as muc...