PORTSMOUTH, N.H. — Lodging Econometrics (LE) released its Global Hotel Construction Pipeline Trend Report, stating the construction pipeline is up 94 per cent by projects over the cyclical low established in 2011 when global counts were at 6,907 projects/ 1,257,296 rooms.
Currently, there are 6,197 projects/1,142,207 rooms under construction worldwide, dropping 10 per cent by projects and seven per cent by rooms year-over-year (YOY). Projects scheduled to start construction in the next 12 months are down 21 per cent by projects and 19 per cent by rooms, ending the second quarter with a total of 3,623 projects/527,392 rooms. Projects in the early planning stage stand at 3,600, just eight projects short of the record high established in the fourth quarter of 2019. However, rooms hit an all-time high count this quarter for a total of 583,900.
Countries with the highest project count include the U.S. with 4,787 projects/598,111 rooms and China with 3,454 projects/661,043 rooms. Together, the U.S. and China represent 61 per cent of global pipeline projects. Specifically, the markets with the largest pipeline counts are New York with 146 projects/25,232 rooms and Chengdu, China with 138 projects/28,009 rooms.
The top five franchise companies leading the global construction pipeline are Marriott International with 2,471 projects/425,351 rooms, Hilton Worldwide with 2,450 projects/370,619 rooms, InterContinental Hotels Group (IHG) with 1,669 projects/246,575 rooms, Accor with 913 projects/168,562 rooms and Hyatt with 371 rooms/73,767 projects. In total, these companies account for 59 per cent of the global pipeline.
In 2022, LE expects 3,122 new hotel openings and 476,185 rooms, with 1,008 openings based in the U.S. In 2023, LE is forecasting 2,890 new hotels/468,645 rooms opening around the world.