Search

Ă—

LE: Marriott leads US hotel construction pipeline in Q2

by Kathakali Nandi

August 7, 2023 - Categories: Hospitality News, Hotels: News,

Three franchise companies dominated the U.S. hotel construction pipeline in the second quarter, with Marriott emerging as the company with the biggest pipeline in the country, as per a recent study by Lodging Econometrics.

According to the study, Marriott has 1,511 projects totaling 181,632 rooms. This was followed by Hilton with record high project and room counts of 1,470 projects totaling 164,848 rooms. IHG came third with 811 projects/80,516 rooms.

Together, Marriott, Hilton and IHG accounted for 68% of all projects in the country’s total hotel construction pipeline.

Brands with the highest construction pipeline:

  • Home2 Suites by Hilton- 565 projects/57,970 rooms
  • IHG’s Holiday Inn Express- 306 projects/28,756 rooms
  • Marriott’s TownePlace Suites- 345 projects/32,190 rooms
  • Marriott’s Residence Inn- 258 projects/ 31,119 rooms
  • Hampton by Hilton- 292 projects/29,796 rooms
  • IHG’s Avid Hotel- 132 projects/11,102 rooms
Marriott had the largest hotel construction pipeline in the U.S. in Q2 2023.

The second quarter saw record-high conversion projects, accounting for 106,408 rooms. Hilton led among the conversion projects with 142 projects/17,468 rooms, followed by G6 Hospitality, Marriott, Best Western and IHG. Combined, these five companies represented 47% of the conversion projects in the U.S.

Throughout the second quarter, 60% of the new hotels that opened in the country were Hilton, Marriott or IHG-branded hotels. Hilton opened 57 new hotels/6,398 rooms, Marriott opened 56 new hotels/7,309 rooms and IHG opened 22 new hotels/2,304 rooms.

Brands with the highest number of openings (in Q1 and Q2):

  • Home2 Suites by Hilton- 19 new hotels/1,956 rooms
  • Hampton by Hilton- 19 new hotels/1,977 rooms
  • Marriott’s SpringHill Suites- 9 new hotels/1,158 rooms

With 145 new hotels, 17,793 rooms and a growth rate of 2.3%, Hilton will open the highest number of new hotels this year, as per LE forecast. This will be followed by Hilton (144 hotels/18,206 rooms for a growth rate of 2%) and IHG (84 hotels/9,416 rooms for a growth rate of 2.2%).

In 2024, Marriott is expected to lead new hotel openings with 192 new hotels totaling 22,298 rooms (for a growth rate of 2.5%), followed by Hilton with 176 new hotels/with 20,004 rooms (a growth rate of 2.5%) and IHG with 111 new hotels /10,924 rooms.

In 2025, Marriott is projected to open 256 new hotels/29,572 rooms (3.1% growth rate). IHG is expected to open 202 new hotels/19,390 rooms (4.4% growth rate), while Hilton will open 139 new hotels/14,780 rooms (1.8% growth rate).

Comment