PORTSMOUTH, N.H. — Lodging Econometrics (LE) has released its Q4 year-end Global Construction Pipeline Trend Report. At the close of 2022, the total global construction pipeline stands at 14,267 projects, a four-per-cent increase year-over-year (YOY), with 2,298,846 rooms. The global pipeline has remained relatively flat for three consecutive years, following the onset of the COVID-19 pandemic, after reaching peak project and room counts in Q4 2019. However, three of the seven world regions tracked by LE, the U.S., Canada and Asia Pacific, continue to have pipelines trending upward, YOY.
At the close Q4 2022, there were 6,035 projects/1,091,929 rooms under construction worldwide, down one per cent by projects and four per cent by rooms YOY. Projects scheduled to start construction in the next 12 months stand at 3,591 projects/510,969 rooms, up one per cent by projects YOY and down one per cent by rooms YOY. Projects and room counts in the early planning stage are at all-time highs and standing at 4,641 projects/695,948 rooms, up 13 per cent by projects and seven per cent by rooms YOY. Conversion counts stand at 1,751 projects/214,880 rooms, up 21 per cent by projects and 13 per cent by rooms YOY, while renovations closed the quarter standing at 1,241 projects/212,219 rooms, up 64 per cent by projects and 42 per cent by rooms YOY.
The top countries for new hotel construction by project count at Q4 2022 are led by the U.S. with 5,465 projects/650,626 rooms and China with 3,581 projects/675,074 rooms. These two countries account for 63 per cent of the projects in the total global construction pipeline, with the U.S. claiming 38 per cent of the projects and China accounting for 25 per cent. Distantly following are India with 383 projects/47,539 rooms; the U.K. with 295 projects/43,332 rooms; and Canada with 267 projects/35,758 rooms.
The top-five cities with the largest construction pipeline totals are the U.S. and China, including Dallas with record project counts of 176 projects/20,790 rooms; Atlanta with 145 projects/18,100 rooms; Chengdu, China with 132 projects/26,891 rooms; Los Angeles with 122 projects/19,419 rooms; and Shanghai, China with 117 projects/22,539 rooms.
The leading franchise companies are Marriott International with 2,656 projects/429,007 rooms; Hilton Worldwide with 2,661 projects/384,498 rooms; InterContinental Hotels Group (IHG) with 1,736 projects/257,145 rooms; Accor with 932 projects/163,955 rooms; and Wyndham Hotels & Resorts with 722 projects/95,766 rooms. These five companies account for 61 per cent of all projects in the global pipeline.
The brands with the greatest number of projects in the pipeline for each of these companies are Hilton’s Hampton by Hilton brands with 770 projects/100,246 rooms; IHG’s Holiday Inn Express with 598 projects/74,729 rooms; Marriott’s Fairfield Inn with 349 projects/42,596 rooms; Accor’s Ibis brands with 254 projects/31,657 rooms; and Wyndham’s La Quinta brand with 135 projects/11,363 rooms.
Throughout 2022, a total of 1,842 new hotels/284,814 rooms opened worldwide, with 469 of those hotels and 77,018 rooms opened in Q4. LE analysts forecast that 2,480 new hotels, accounting for 380,736 rooms, will open in 2023 and another 2,707 new hotels/416,173 rooms are forecast to open by year-end 2024.