PORTSMOUTH, N.H. — The total global construction pipeline stands at 14,117 projects/2,293,131 rooms, up five per cent by projects and two per cent by rooms year-over-year (YOY), according to Lodging Econometrics’ Q2 2022 Global Construction Pipeline Trend Report.
Currently, there are 6,074 projects/1,110,174 rooms under construction at the Q2 close. Projects scheduled to start construction in the next 12 months, at 3,664 projects/525,096 rooms, are up one per cent by projects YOY and unchanged by rooms, while projects in early planning reached record-high counts of 4,379 projects/657,861 rooms, up 22 per cent by projects and 13 per cent by rooms YOY. Conversions in the global hotel construction pipeline reached new highs in Q2, with 1,672 projects/206,355 rooms.
At the end of the second quarter, the top countries by project count are the U.S. with 5,220 projects/621,268 rooms and China with a current pipeline of 3,693 projects/701,974 rooms. The U.S. accounts for 37 per cent of projects in the total pipeline while China has 26 per cent, resulting in 63 per cent of all global projects being concentrated in these two countries. Distantly following are India with 339 projects/42,548 rooms, the U.K. with 309 projects/46,296 rooms and Indonesia with 284 projects/45,359 rooms.
Additionally, markets with the largest pipelines are Dallas with 173 projects/20,707 rooms; Chengdu, China with 141 projects/28,573 rooms; and Atlanta with 140 projects/18,131 rooms. Shanghai, China follows with 128 projects/25,200 rooms then Los Angeles with 124 projects/20,365 rooms.
The leading franchise company is Hilton Worldwide, with 2,596 projects/379,818 rooms, followed by Marriott International with 2,533 projects/421,613 rooms; InterContinental Hotels Group (IHG) with 1,687 projects/247,310 rooms; and Accor with 894 projects/155,577 rooms. Together, these companies account for 55 per cent of all projects in the pipeline. Specific brands leading the pipeline for these companies are Hampton by Hilton with 768 projects/100,732 rooms; Fairfield Inn with 343 projects/42,113 rooms; Holiday Inn Express with 610 projects/76,991 rooms; and Ibis by Accor with 250 projects/32,362 rooms.
The first half of 2022 saw a total of 803 new hotels/121,029 rooms open around the world, with an additional 1,653 hotels/244,956 rooms scheduled to open by year-end. In 2023, 2,658 new hotel openings/416,640 rooms are expected to open. For 2024, LE is forecasting 2,786 new hotels, accounting for 435,870 rooms to open globally.