Press & Media
Read recent LE press releases for an inside look at global lodging real estate news, regional and individual market insights, and growth trends for leading Franchises Companies and brands.
U.S. Hotel Construction Pipeline Finishes 2019 Trending Upward January 27,2020At the close of 2019, analysts at Lodging Econometrics (LE) report that the total U.S. construction pipeline continues to grow with 5,748 projects/708,898 rooms, up 4% by projects and 6% by rooms year-over-year (YOY). The pipeline has now completed its eighth consecutive year of growth. These robust year-end counts are a mere 135 projects/76,649 rooms shy of the all-time high of 5,883 projects/785,547 rooms reached in the second quarter of 2008.
Projects under construction continue to rise reaching an all-time high of 1,768 projects with 237,362 rooms, up 7% by projects and 10% by rooms, YOY. Projects scheduled to start construction in the next 12 months stand at 2,283 projects/265,161 rooms. Projects in the early planning stage are at 1,697 projects/206,375 rooms.
In 2019, the U.S. had 1,017 new hotels/118,674 rooms open, a 2.2% growth in new supply, bringing the total U.S. census to 57,903 hotels/5,486,909 rooms. The LE forecast for new hotel openings in 2020 anticipates a 2.3% supply growth rate with 1,127 new hotels/127,896 rooms expected to open. In 2021, the forecast for new hotel openings rises slightly to 1,162 new hotels/135,228 rooms, a 2.4% growth rate.
The hotel construction pipeline outlook in the U.S. should continue to remain optimistic through 2020 and through the early part of the new decade. The financial markets are strong, a partial trade agreement between the U.S. and China has been reached, and interest rates could very well go unchanged in 2020. Overall, the economy is in a good place, and the concerns of a possible recession have eased. Lenders continue to be cautious, but lending at attractive rates is still accessible to developers and should continue to drive development.
Los Angeles has the Largest Hotel Construction Pipeline in the United States January 24,2020In the most recent Lodging Econometrics (LE) Construction Pipeline Trend report on Los Angeles, LE states that Los Angeles has a total of 168 projects/28,501 rooms in the construction pipeline, the largest pipeline of any market in the U.S. Of this total, hotels presently under construction are at 46 projects/7,064 rooms, projects scheduled to start construction in the next 12 months are at 56 projects/9,199 rooms, and those in early planning are at 66 projects/ 12,238 rooms. If all of the projects in the pipeline come to fruition, this will increase the city’s guest room supply by 27.1%.
The three market tracts with the largest hotel construction pipelines are: Los Angeles Central Business District with 47 projects/11,490 rooms; Los Angeles East with 32 projects/4,418 rooms; and Los Angeles North with 29 projects/3,037 rooms. These three important market tracts combined account for 67% of the rooms in Los Angeles’ total construction pipeline.
The market tracts with the most projects presently under construction are Los Angeles North with 12 projects/1,153 rooms; Los Angeles Central Business District with 10 projects/2,208 rooms; and Los Angeles East with 8 projects/1,333 rooms.
LE’s forecast for new hotel openings predicts that in 2020, Los Angeles will have a growth rate of 2.5% with 19 new hotels/2,589 rooms opening. In 2021, Los Angeles is forecast to jump to a 4.4% growth rate with 33 new hotels/4,784 rooms expected to open.
Led by Hilton, Marriott, and Accor, the Middle East Pipeline is in an Extended Topping-Out Formation December 18, 2019Analysts at Lodging Econometrics (LE) report that in the third quarter of 2019 the hotel construction pipeline in the Middle East stands at 625 projects/178,433 rooms. Pipeline project counts are up a slight 2% while room counts show a 1% decrease year-over-year (YOY). It is the seventh consecutive quarter of the total pipeline count exceeding 170,000 rooms.
Projects presently under construction are at 344 projects/112,601 rooms while projects scheduled to start construction in the next 12 months have 145 projects/33,031 rooms, the tenth quarter of exceeding 30,000 rooms. Projects in the early planning stage are at 136 projects/32,801 rooms, up 14% and 11% respectively, YOY.
New projects announced into the pipeline have slowed noticeably with only 27 projects/7,034 rooms announced in the third quarter, the lowest count since the third quarter of 2015.
LE forecasts that the Middle East is on track to open 93 new hotels with 22,247 rooms by the year’s end, surpassing the all-time high of 85 hotels/20,047 rooms set in 2018. New records are also likely to be set in both 2020 and 2021 as LE’s forecast for new hotel openings climbs to 112 hotels/35,216 rooms and 139 hotels/36,609 rooms, respectively.
Countries in the Middle East with the greatest number of projects in the construction pipeline are Saudi Arabia with a record high 218 projects and 73,599 rooms and the United Arab Emirates with 211 projects/60,452 rooms. Egypt follows with 57 projects/14,585 rooms and Qatar with 56 projects/13,587 rooms.
Continuing to dominate the construction pipeline in the U.A.E. and throughout the region is Dubai with 168 projects/50,152 rooms. Other notable but distantly following emirate countries are Abu Dhabi with 16 projects/3,938 rooms and Ras al Khaimah with 15 projects/4,351 rooms.
Cities with the largest hotel construction pipelines are Saudi Arabia’s Provincial region with 68 projects/13,809 rooms, Riyadh with an all-time high of 61 projects with 11,709 rooms, and Jeddah with 52 projects/11,226 rooms. Doha, Qatar with 50 projects/11,466 rooms and Saudi Arabia’s Makkah with 37 projects/36,855 rooms follow. Four of the Middle East cities with the largest pipelines are in Saudi Arabia and account for 48% of the rooms in the total pipeline.
Hilton Worldwide is the top franchise company in the Middle East with the largest construction pipeline standing at 95 projects/25,664 rooms. Next is Marriott International with 93 projects/20,726 rooms. AccorHotels follow with 92 projects/25,011 rooms. InterContinental Hotels Group (IHG) recorded a new all-time high this quarter with 41 projects/15,066 rooms.
The leading pipeline brands for these franchise companies are Hilton’s DoubleTree with 28 projects/6,580 rooms, Hilton Hotel & Resort at 22 projects/6,959 rooms and Hilton Garden Inn at an all-time high with 21 projects/6,406 rooms; Marriott’s Courtyard with 21 projects/4,459 rooms and Residence Inn with 16 projects/1,877 rooms, both are at record highs; AccorHotels’ Ibis brands standing at 15 projects/5,113 rooms and Novotel with 14 projects/4,596 rooms; and IHG’s Holiday Inn with a record 12 projects/3,548 rooms and the InterContinental Hotel brand with 8 projects/1,809 rooms.
Europe’s Hotel Construction Pipeline Continues its Expansion Amidst Economic Turbulence December 13, 2019Analysts at Lodging Econometrics (LE) report that in the third quarter of 2019, Europe’s hotel construction pipeline climbed to record high counts with 1,710 projects and 264,080 rooms, an 18% increase in projects and a 16% increase in rooms year-over-year (YOY). This is the seventh year of pipeline expansion for the region. This growth has been driven primarily by the substantial growth of the major global hotel companies who have acquired the brands of others or created new brands to bolster their existing portfolios throughout the last decade.
Projects under construction stand at 830 projects with 132,225 rooms, while projects planning to start construction in the next 12 months recorded 496 projects/76,692 rooms. Projects in the early planning stage have 384 projects/55,163 rooms. The three stages of development and the six chain scales of Europe’s pipeline are experiencing double-digit increases YOY and are at or near record highs.
However, Europe’s economy is likely now cresting as the region makes its way towards a Brexit resolution and through the economic turbulence and uncertainty of the U.S./China trade war. According to World Bank data, Europe will be by far the largest victim of continued trade uncertainty, not China or the U.S. Weakness in pipeline growth is already beginning to show as new project announcements into the pipeline have declined substantially in the last two quarters.
Through the third quarter of 2019, Europe opened 325 new hotels with 43,089 rooms and is forecast to open another 81 new hotels/9,241 rooms by year end. With the pipeline at record highs, the LE forecast for new hotel openings will continue to ascend in the coming years with 450 new hotels/63,383 rooms scheduled to open in 2020 and climbing even higher in 2021 to 499 new hotels with an impressive 75,517 rooms expected to open.
Germany, Europe’s economic powerhouse, leads the construction pipeline with 314 projects/57,485 rooms. The United Kingdom follows at 296 projects/42,307 rooms, then France and Portugal with 172 projects/21,743 rooms and 115 projects/11,821 rooms, respectively. Next is Poland with 87 projects/13,485 rooms.
The cities in Europe with the largest pipelines are London with 82 projects/14,007 rooms, Dusseldorf, at an all-time high 53 projects/10,471 rooms, and Paris at 52 projects/7,922 rooms. Next is Lisbon with 36 projects having 3,247 rooms and then Moscow with 30 projects/6,396 rooms. Hamburg follows closely with 30 projects/6,381 rooms.
Franchise companies with the largest construction pipelines are led by Marriott International with an all-time high of 220 projects/35,975 rooms. Next is AccorHotels with 213 projects/28,941 rooms. Hilton Worldwide follows with 176 projects/27,047 rooms, and InterContinental Hotels Group (IHG) with 145 projects/24,330 rooms. These four global franchise companies account for 44% of all projects in Europe’s pipeline.
The leading brands for these four companies are AccorHotel’s Ibis brands with 105 projects/13,447 rooms and Novotel and Mercure Hotels with 24 projects/3,767 rooms and 24 projects/2,667 rooms, respectively. Marriott International’s Moxy set a record high, with 70 projects/12,699 rooms, Courtyard by Marriott has 31 projects/5,522 rooms, and Residence Inn, is at an all-time high, with 20 projects/1,909 rooms.
Hilton Worldwide has Hampton by Hilton with 71 projects/ 11,051 rooms, Hilton Garden Inn with 39 projects/5,851 rooms, and DoubleTree by Hilton with 24 projects having 3,072 rooms. IHG’s top brands include Holiday Inn Express with 67 projects/10,394 rooms, Holiday Inn with 34 projects/7,796 rooms, and Hotel Indigo with 13 projects/1,478 rooms.
Asia Pacific’s Hotel Construction Pipeline, Excluding China, Continues in a Topping-Out Formation December 09, 2019In the recently released report from analysts at Lodging Econometrics (LE), Asia Pacific’s total construction pipeline, excluding China, continues in a four-quarter topping out formation with 1,779 projects/389,830 rooms, up 2% and 6% respectively, year-over-year (YOY).
The region currently has 958 projects/221,927 rooms under construction. There are 391 projects/78,032 rooms scheduled to start construction in the next 12 months and 430 projects in the early planning stage with room counts at an all-time high of 89,871 rooms. Brand conversions are also at an all-time high.
Excluding China, the Asia Pacific region opened 243 new hotels with 43,600 rooms through the close of the third quarter and is forecast to open another 95 new hotels/19,621 rooms by year-end. The LE forecast for new hotel openings will rise in 2020 to 374 projects with a record 77,315 rooms before slowing slightly in 2021 to 360 new hotels/71,077 rooms. In preparation for the 2020 summer Olympics, Japan continues to have the largest count of new hotels forecast to open in the region with 41% of all new hotels in 2019 and 30% in 2020.
Countries with the largest pipelines in Asia Pacific, excluding China, are led by Indonesia, with 375 projects/62,547 rooms, accounting for 21% of Asia Pacific’s total pipeline. Next is India with 236 projects/34,389 rooms, then Japan standing at 211 projects/44,014 rooms. These countries are followed by Vietnam with 134 projects having 56,720 rooms and Malaysia at 134 projects/36,252 rooms.
Cities with the largest construction pipelines in Asia Pacific are led by Jakarta, Indonesia with 84 projects/15,362 rooms. Next is Seoul, South Korea with 73 projects/13,945 rooms and Kuala Lumpur, Malaysia with 54 projects/14,232 rooms. Tokyo follows with 53 projects/12,375 rooms and Bangkok with 46 projects/12,305 rooms. Kuala Lumpur, Jakarta, and Seoul all have pipelines higher than 25% of their existing supply of open and operating hotels.
The top four franchise companies, accounting for 41% of all the projects and rooms in the pipeline, are: Marriott International with an all-time high of 258 projects/57,839 rooms; AccorHotels with 218 projects/46,092 rooms; InterContinental Hotels Group (IHG), at a record high 162 projects/36,045 rooms; and Hilton Worldwide, also with an all-time high of 91 projects/20,422 rooms.
Top brands in Asia Pacific’s construction pipeline, excluding China, include AccorHotels’ Ibis brands with 56 projects/10,735 rooms and Novotel with 41 projects/10,010 rooms. Marriott International’s two top brands are Fairfield Inn with 40 projects/6,472 rooms and Courtyard at 38 projects/8,044 rooms both at record highs. IHG’s Holiday Inn has 63 projects with 14,136 rooms while Holiday Inn Express has 33 projects/6,950 rooms. Hilton Worldwide’s DoubleTree and its full-service Hilton Hotel & Resorts are also at record highs with 33 projects/6,587 rooms and 30 projects/7,874 rooms, respectively.
China’s Hotel Construction Pipeline Has Grown to Record High December 05, 2019Analysts at Lodging Econometrics (LE) report that at the end of the third quarter of 2019, China’s total construction pipeline has grown to 3,380 projects/628,972 rooms. Currently the country has 2,548 projects with 438,797 rooms under construction with projects scheduled to start construction in the next 12 months at 404 projects with 85,026 rooms. Projects in the early planning stage have 428 projects/105,149 rooms.
Hotel development continues to thrive despite the continued economic struggles in the region and the on-going trade and tariff disputes with the United States. In the third quarter, China announced 661 new projects with 80,692 rooms into the pipeline.
Through the third quarter of 2019, China opened 658 new hotels/92,932 rooms with another 363 new hotels/45,799 rooms forecast to open by year-end. In 2020, 1,084 new hotels with a lofty 157,893 rooms are forecast to open. Should all of these hotels come online in 2020, then China will open the largest number of new hotel rooms since the cyclical peak in 2014. In 2021, following a year of all-time high new hotel openings, LE forecasts that the number of new hotel openings will decelerate to 773 hotels with 135,294 rooms.
Chengdu, at a record high 124 projects having 25,560 rooms, leads China’s pipeline. Guangzhou follows standing at 122 projects with 26,105 rooms, then Shanghai at 119 projects/22,581 rooms. Next is Wuhan and Suzhou with 111 projects/15,457 rooms and 88 projects/14,855 rooms, respectively. Also, notable, with strong room counts, are Hangzhou with 73 projects/15,647 rooms and Xi’an with 80 projects/15,054 rooms.
Four of the seven cities listed above have pipeline increases in excess of 20% of their existing open and operating supply with Chengdu having a pipeline in excess of 30%.
Franchise companies topping China’s construction pipeline are led by Hilton Worldwide with 454 projects/93,644 rooms. Next is InterContinental Hotels Group (IHG) with 375 projects/82,358 rooms and Marriott International with 315 projects/86,151 rooms. All three of these companies are setting record pipeline highs by projects and rooms and account for 34% of China’s total pipeline. Other notable franchise company pipelines are AccorHotels with 218 projects/35,556 rooms and JinJiang Holdings standing at 214 projects/22,548 rooms.
Brands in the pipeline are led by Hampton by Hilton with a record 273 projects/42,645 rooms. Hilton’s second largest brand, by project count, is DoubleTree with 59 projects/16,489 rooms. IHG’s primary brands in China are Holiday Inn Express, at a record count, with 179 projects/31,430 rooms and Holiday Inn with a record 61 projects having 15,435 rooms. Marriott International’s top brands are the full-service Marriott Hotel & Resort, hitting record highs, with 73 projects/22,068 rooms and then Courtyard with 39 projects/10,250 rooms. Leading brands for JinJiang Holdings are 7 Days Inn with 113 projects/8,931 rooms, and Vienna Hotel with 26 projects/3,300 rooms. AccorHotels’ leading brand, Ibis, is also hitting all-time highs with 102 projects/10,888 rooms, while Mercure Hotel also has a record number of projects with 58 and totaling 9,346 rooms.
The Latin America Hotel Construction Pipeline Room Count Up Slightly Quarter Over Quarter November 22, 2019In the recent Latin America construction pipeline trend report from Lodging Econometrics (LE), the total construction pipeline stands at 723 projects/131,075 rooms. Pipeline room counts are up slightly at 4%, year-over-year (YOY), and are still near all-time lows. However, the luxury chain scale at 86 projects/15,366 rooms and upper upscale at 101 projects/21,072 rooms are at the highest levels ever recorded by LE.
Projects presently under construction stand at 334 projects/60,720 rooms. Projects scheduled to start construction in the next 12 months stand at 205 projects/35,199 rooms, up 5% and 15% respectively, and those in the early planning stage are at 184 projects/35,156 rooms as the pipeline turns over towards larger projects.
At the close of the third quarter of 2019, Latin America opened 75 new hotels with 14,468 rooms. The LE forecast for the remainder of the year shows another 50 new hotels with 7,579 rooms scheduled to open. In 2020, annual totals will be 60% below the peak recorded in the second quarter of 2017. LE’s forecast for new openings is expected to rise to 136 new hotels with 25,490 rooms in 2020 and rise again in 2021 to 143 new hotels with 20,931 rooms.
Mexico has the most projects in the Latin America pipeline and is at an all-time high with 217 projects. The country also accounts for 31% of all rooms with 40,835. Brazil follows with 147 projects/24,619 rooms. These two countries account for 50% of the projects and rooms in the pipeline. Following distantly are the Dominican Republic, at an all-time high, with 37 projects/11,397 rooms, then Cuba and Colombia with 27 projects/7,957 rooms and 44 projects/7,153 rooms, respectively.
Cities in Latin America with the largest pipelines by rooms include Cancun, Mexico with 21 projects/10,054 rooms; Lima, Peru with 32 projects/4,798 rooms; Mexico City with 25 projects/4,604 rooms; Sao Paulo, Brazil with 18 projects/3,094 rooms; and Cartagena, Colombia with 15 projects/2,945 rooms. These five cities make up 20% of the rooms in the pipeline.
Marriott leads with the highest count of projects in the Latin America pipeline with 122 projects/20,658 rooms. AccorHotels follows with 106 projects/14,585 rooms. Next is Hilton Worldwide at a record high 84 projects with 11,940 rooms, and InterContinental Hotels Group (IHG) with 57 projects/6,686 rooms. The brands for these four companies, collectively, represent 51% of the projects in the construction pipeline.
The top brands in the pipeline are AccorHotel’s Ibis brands with 72 projects/9,520 rooms, Hampton by Hilton with 24 projects/2,739 rooms, Hilton Garden Inn with 21 projects/2,977 rooms, and IHG’s Holiday Inn Express with 18 projects/2,136 rooms. Following these brands are Marriott’s Fairfield Inn with 16 projects/2,371 rooms, and Courtyard by Marriott with 11 projects/1,660 rooms.
Canada’s Hotel Construction Pipeline Ascends to a Record High with a 28% Increase in Rooms Year-Over-Year November 13, 2019At the close of the third quarter of 2019, analysts at Lodging Econometrics (LE) report that the total construction pipeline in Canada soared to an all-time high with 289 projects/38,453 rooms. Construction pipeline projects are up 17% and rooms are up a remarkable 28% year-over-year (YOY).
Currently, there are 85 projects/10,337 rooms under construction. Projects scheduled to start construction in the next 12 months have experienced an extraordinary 47% increase in both projects and rooms, YOY, standing at a record high of 125 projects/14,574 rooms. Projects in the early planning stage stand at 79 projects with an impressive 13,542 rooms. This is an 8% increase in projects and a 46% increase in rooms. This substantial rise in rooms has increased the average hotel size in the early planning stage from 127 rooms a year ago to a lofty 171 rooms currently.
In the third quarter, Canada had 47 new project announcements with 5,760 rooms. This is the largest count that LE has recorded in the country for a single quarter and is a 42% increase quarter over quarter.
Through the third quarter, Canada opened 44 new hotels/5,330 rooms with an additional 7 new hotels/641 rooms scheduled to open before year-end. In 2020, the LE forecast for new hotel openings show 59 new hotels with 6,440 rooms expected to open. In 2021, Canada is forecast to open 70 new hotels/7,714 rooms. If all the new hotels forecast for 2021 come online, it will be the largest count of new hotel openings since LE began tracking the region in 2008.
Ontario is the most active province for pipeline projects in Canada, which is at a record-high, with 147 projects/19,442 rooms. Next is British Columbia, also at a record high, with 47 projects/6,520 rooms and then Alberta with 31 projects/4,889 rooms. Together these three provinces account for 80% of the rooms in Canada’s Pipeline.
The top cities are led by Toronto with 49 projects/7,525 rooms, at a record high and claiming 20% of all the rooms in Canada’s total construction pipeline. Following distantly are Niagara Falls with 14 projects/3,125 rooms, Ottawa with a record 14 projects/2,226 rooms, Vancouver with 14 projects/1,660 rooms, and Montreal with a record 13 projects having 1,773 rooms. These five cities alone account for 42% of the rooms in the total pipeline.
The top franchise companies in Canada’s construction pipeline are Hilton Worldwide at an all-time high with 58 projects/6,848 rooms, followed closely by Marriott International with a record 55 projects having 6,951 rooms and then InterContinental Hotels Group (IHG) with 50 projects/4,806 rooms. These three franchise companies claim 56% of the projects in the total pipeline.
The top brands in Canada’s pipeline are IHG’s Holiday Inn Express with 29 projects/2,838 rooms. Next is Hampton by Hilton with 27 projects/3,130 rooms and TownePlace Suites by Marriott with 14 projects/1,464 rooms.
Other noteworthy brands in the Canadian pipeline are Hyatt Place with 18 projects/3,043 rooms, Courtyard by Marriott with 11 projects/1,711 rooms and Best Western Plus with 9 projects/772 rooms.
Marriott Leads with the Largest U.S. Hotel Construction Pipeline November 12, 2019
In the Lodging Econometrics (LE) fall report for 2019, the franchise companies dominating the United States hotel construction pipeline are led by Marriott International with 1,484 projects/196,023 rooms, up 8% by projects and rooms year-over-year (YOY). Next is Hilton Worldwide currently at 1,373 projects/153,408 rooms and InterContinental Hotels Group (IHG) with 960 projects/98,139 rooms.
Pipelines are very strong for these companies. Both Marriott and Hilton’s total pipelines are near all-time highs, as are hotels under construction, with Marriott setting a record high.
The leading brands in the construction pipeline for each of the above three companies are Home2 Suites by Hilton with 415 projects/43,239 rooms, IHG’s Holiday Inn Express with 399 projects/37,974 rooms, and Marriott’s Fairfield Inn with 296 projects/28,662 rooms.
Other prominent brands in the pipeline for these franchise companies are Hampton by Hilton with 306 projects/31,739 rooms and Tru by Hilton with 303 projects/29,423 rooms; Marriott’s Towne Place Suites with 214 projects/21,908 rooms and Residence Inn with 203 projects/24,746 rooms; and IHG’s Avid Hotel with 182 projects/16,627 rooms and Staybridge Suites with 162 projects/16,915 rooms. These prominent brands combined comprise 44% of projects in the total pipeline.
Through the end of the third quarter, Marriott opened 193 new hotels/24,208 rooms accounting for 30% of all new hotel rooms that opened in the U.S. Hilton opened 198 new hotels/22,450 rooms accounting for 28% of newly opened rooms and IHG opened 104 new hotels/10,866 rooms accounting for 13% of rooms.
The LE forecast for new hotel openings in 2020 anticipates that Marriott will open 271 projects/33,945 rooms. Next is Hilton with 279 projects/30,010 rooms, followed by IHG with 176 projects/16,974 rooms.
In 2021, LE forecasts that Marriott will open 291 new hotels/37,873 rooms, Hilton is expected to open 263 new hotels/28,231 rooms and IHG to open 225 new hotels/22,564 rooms.
Los Angeles has the Largest U.S. Hotel Construction Pipeline November 11, 2019According to the third quarter construction pipeline trend report published by Lodging Econometrics (L.E.), the top five markets with the largest hotel construction pipelines by projects is led by Los Angeles with 161 projects/26,670 rooms. Next are New York and Dallas with 155 projects/26,605 rooms and 160 projects/20,020 rooms, respectively. Houston follows with 138 projects/14,130 rooms, and Atlanta with 137 projects/18,396 rooms.
The total pipelines for the top 25 markets account for 39.7% of all pipeline rooms and when built out represent a potential growth rate of 15.9% over all existing open and operating rooms (census). While overall supply growth has risen to 2.0% year to date in 2019, it’s 2.5% in the top 25 markets and 1.7% in the other markets nationwide.
In the first three quarters of 2019, the U.S. opened 704 new hotels with 81,111 rooms. The markets with the highest number of new openings are New York City with 28 hotels/4,513 rooms, Dallas with 26 hotels/3,073 rooms, Houston with 18 hotels/2,285 rooms, Boston with 16 hotels/2,435 rooms and Nashville with 15 hotels/1,965 rooms. These 5 markets alone account for 15% of all new hotels that opened in the U.S. through the end of the third quarter.
For the last 3 years Dallas, with 92 hotels, opened the most hotels. New York with 90, Houston at 76, Nashville with 62 and Atlanta with 58 follow. All but Nashville show supply growth in excess of demand growth year-to-date in 2019.
The markets forecast to open the greatest number of new hotels in 2020 are New York City with 61 new hotels/8,283 rooms, Dallas with 35 new hotels/3,852 rooms and Los Angeles with 24 new hotels/3,370 rooms. In 2021, Dallas leads the forecast for new hotel openings with 43 hotels/5,283 rooms followed by Houston and Los Angeles with 39 new hotels/3,725 rooms and 27 new hotels/3,868 rooms respectively. In the next 3 years, markets with the highest number of new hotels (supply) expected to open are: New York with 123, Dallas 107, Houston 87, Atlanta 72 and Nashville with 67.
U.S. Hotel Construction Pipeline Continues Its Year-Over-Year Growth November 8, 2019In its fall report, buoyed by a steady consumer-driven economy, analysts at Lodging Econometrics (LE) reported that the total U.S. construction pipeline stood at 5,704 projects/700,496 rooms, up 6% by projects and 8% by rooms year-over-year (YOY). Pipeline totals continue to climb closer to the all-time high of 5,883 projects/785,547 rooms reached in the second quarter of 2008, and are just 179 projects shy.
In its eighth consecutive quarter of growth, projects currently under construction stand at 1,729 projects/235,278 rooms, the highest count recorded since the second quarter of 2008. Projects scheduled to start construction in the next 12 months, currently 44% of all pipeline projects, was 2,479 projects/286,125 rooms, very close to the all-time high set in 2009. It’s up a whopping 16% in projects and 13% in rooms, YOY. Projects in the early planning stage stand at 1,496 projects/179,093 rooms.
But as a result of declines in commercial investment brought about by the indecision caused by the global slowdown and the prolonged tariff imbroglio. This is the second quarter in a row where construction starts have declined, an indicator that pipelines growth may top out in late 2020/2021.
Through the end of the third quarter, 704 new hotels with 81,111 rooms opened across the U.S. with another 299 projects/33,059 rooms expected to open by year-end. New hotel openings in the LE forecast for 2020 stand at 1,112 new hotels/122,702 rooms followed by 1,126 new hotels/130,447 rooms scheduled to open in 2021.
This quarter is the first time this cycle where supply growth at 2% has risen and drawn even with demand growth which has fallen to 2%. In 2019, 16 of the top 25 markets show occupancy declines YOY while 11 markets show Rev Par declines.
New York City Among Top Hotel Construction Pipeline in the United States November 7, 2019
In the most recent Lodging Econometrics (LE) Construction Pipeline Trend report on New York City, LE states that New York City has a total of 155 projects/26,605 rooms in the construction pipeline, one of the top three largest pipelines in the U.S. Of this total, hotels presently under construction are at 102 projects/17,504 rooms, projects scheduled to start construction in the next 12 months are at 23 projects/3,637 rooms, and those in early planning are at 30 projects/5,464 rooms.
The three market tracts with the largest hotel construction pipelines are: Midtown South, the area between 24th and 36th Streets, with 33 projects/7,620 rooms; the greater New York City Area, which includes Brooklyn, the Bronx, and Staten Island, with 28 projects/2,436 rooms; and the East River area, which includes Queens and Brooklyn West, with 27 projects/4,499 rooms. These three important market tracts combined account for 55% of the rooms in New York City’s total construction pipeline.
The market tracts with the most projects presently under construction are Midtown South with 25 projects/6,012; the East River area with 18 projects/2,925 rooms; and JFK/Jamaica, which includes the area of Queens from the Grand Central Parkway south, the JFK Airport area and Jamaica, with 15 projects/2,055 rooms.
LE’s forecast for new hotel openings predicts that New York City will lead the nation for new hotel openings in 2019 with 41 projects/6,809 rooms. In 2020, New York is again forecast to top the list of new hotel openings with 61 projects/8,283.
The Global Construction Pipeline Ascends to New Record Highs September 27, 2019Lodging Econometrics (LE) recently compiled construction pipeline counts for every country and market around the world. Their analysts state that the total global construction pipeline ascended to a record high of 14,051 projects/2,327,923 rooms, a 9% increase in projects and an 8% increase in rooms year-over-year (YOY). The report summarizes development in 176 countries worldwide
With the exception of Latin America, all regions of the globe either continued to set record high pipeline counts or have already settled into topping-out formations amidst concerns of a worldwide economic slowdown. The fallout after the on-going trade dispute between the United States and China continues to be the leading contributor.
But, low-interest rates and accommodative lending terms are the primary catalysts behind pipeline growth as the global pipeline should continue to grow for the foreseeable future, albeit at a much slower pace.
There is a record high 6,565 projects currently under construction worldwide having 1,192,398 rooms. Projects scheduled to start construction in the next 12 months; peaking at an all-time high for both projects and rooms, stands at 4,392 projects/636,080 rooms. Projects in the early planning stage continue to grow, with a 6% increase in projects and 10% increase in rooms, YOY, standing at 3,094 and 499,445 respectively.
The top countries by project count are the United States with 5,653 projects/693,207 rooms, just 230 projects shy of its all-time high of 5,883 projects set in the second quarter of 2008, and China with a current pipeline of 2,991 projects/592,884 rooms, which is a new high. The U.S. accounts for 40% of projects in the total global construction pipeline while China has 21%, resulting in 61% of all global projects being concentrated in just these two countries. Distantly following are Indonesia with 378 projects/63,196 rooms, Germany with 320 projects/57,689 rooms, and the United Kingdom with 280 projects/40,970 rooms.
Around the world, the cities with the largest pipelines by project counts are Dubai with 173 projects/50,832 rooms, New York City with 166 projects/28,231 rooms, and Dallas, TX with 162 projects/19,972 rooms. Los Angeles, CA follows with 158 projects/25,428 rooms, and Houston, TX with 146 projects/14,998 rooms.
The leading franchise company in the global construction pipeline is Marriott International with 2,534 projects/420,562 rooms. Hilton Worldwide follows closely with 2,334 projects/340,626 rooms. Next is InterContinental Hotels Group (IHG) with 1,769 projects/259,057 rooms, and AccorHotels with 980 projects/175,002 rooms. These four company brands account for 54% of all projects in the pipeline.
Leading brands in the pipeline for each of these companies are IHG’s Holiday Inn Express with 737 projects/93,415 rooms, Hampton by Hilton with 689 projects/90,634 rooms, Marriott’s Fairfield Inn with 397 projects/43,451 rooms, and AccorHotel’s Ibis Brands with 387 projects/54,683 rooms.
The first half of 2019 saw a total of 1,374 new hotels/196,237 rooms open around the world with an additional 1,675 hotels/236,334 rooms scheduled to open by year-end. With the global pipeline being at an all-time high, LE forecasts that new hotel openings will continue to climb with 3,168 hotels expected to open in 2020. In 2021, new openings are forecast to reach 3,171 hotels. Should all hotels forecast to open by 2021 come to fruition, it will be the largest surge of new hotel openings, collectively around the world, that LE has ever recorded.
Lodging Econometrics Develops Premium Data Integration Services for Salesforce and Other Client Relationship Management Platforms February 21, 2019Lodging Econometrics (LE), the global leader for hotel real estate intelligence, announces that it has developed and added a premium data integration service to its business development database offerings. LEConnect for Salesforce and other Client Relationship Management (CRM) platforms allows for LE’s database of decision-makers for new hotel construction projects, renovations, conversions, and open & operating hotels to be seamlessly integrated into any CRM.
“Our clients were very pleased with the upgrades we made to our business development program database and strategy & forecasting center late last year, but recently expressed a need to receive our database content directly into their existing CRM platforms. This is precisely why we built LEConnect and developed this integration service. We’ve designed it so that our clients no longer need two platforms. Now LE can merge any of its global database programs for business development simply and seamlessly into a client’s existing Salesforce or other CRM platform, allowing clients to work entirely within their own platform,” said Timothy Ford, President of Lodging Econometrics.
By subscribing to and installing LEConnect, LE’s clients will be able to identify new accounts with the greatest potential, make more informed and better targeted decisions, increase their sales, and save considerable sales time and staff resources. As with all of LE’s programs, LE also provides staff training and continual support to ensure the successful implementation of their database services throughout the client’s organization.
“For any sales organization in the lodging industry, franchise company, hotel ownership or management group or vendor, LEConnect can immediately improve their productivity and increase their sales. And, for those without an existing CRM platform, LE’s database has the functionality to serve as an organization’s stand-alone CRM platform. We are excited at the opportunity to deliver these new database services to our existing and future clients. Our cutting-edge service removes the frustration and logistics from the data integration process,” said Ford.
To learn how you can get connected with LE’s Business Development Programs, contact us at +1 603.431.8740 or email@example.com.
Congratulations to 2018 ALIS Development of the Year Award Winners! February 14, 2019On Wednesday, January 30, 2019, JP Ford, SVP and Director of Global Business Development of Lodging Econometrics, presented the winners of the 2019 Full-Service and Select/Limited Service Developments of the Year with their prestigious award at the America’s Lodging Investment Summit.
The winner in the Full-Service category was the: Gaylord Rockies Resort & Convention Center. Representing the property was: Ira Mitzner, President and CEO, RIDA Development Corporation; and Noah Silverman, Chief Development Officer, North America Full-Service Hotels, Marriott International.
The winner in the Select/Limited Service category was the: Hilton Garden Inn Chicago McCormick Place, Hampton Inn by Hilton Chicago McCormick Place and Home2 Suites by Hilton Chicago McCormick Place. Representing the property was: David Duncan, President, First Hospitality Group, Inc.
Lodging Econometrics’ Patrick H. Ford Receives Lifetime Achievement Award at The Lodging ConferenceOctober 2, 2018 – PORTSMOUTH, NH – Patrick H. Ford, Chairman, CEO, and Founder of Lodging Econometrics (LE) and New England Hotel Realty (NEHR) of Portsmouth, NH, has received the 2018 Lifetime Achievement Award for the hospitality industry, which was presented at The Arizona Biltmore on September 25, 2018. The Lodging Conference’s founder and producer, Harry Javer and hospitality veteran Michael A. Leven, chairman and CEO of Georgia Aquarium, presented the award to Ford. Nearly two thousand industry members were in attendance at this year’s conference.
The prestigious Lifetime Achievement Award recognizes an individual who has provided outstanding, life-long contributions to the hospitality industry. In a career spanning more than 50 years, Pat Ford began his career with the Dunfey Hotel Company, the predecessor to the Omni Hotel Company, where he spent 20 years in a variety of operational and executive roles. He then created and developed New England Hotel Realty as the largest, full-service hotel brokerage firm in the Northeast. In 1995, at the urging of a number of hotel companies and Wall Street Investment Firms, he founded Lodging Econometrics (LE) to compile lodging development and transaction data for the U.S.
Within two years, LE replicated their development research programs in every country of the world. Shortly thereafter, LE positioned away from solely being a data provider towards being a lodging sales and marketing specialty firm as well as providing a variety of customized new hotel construction and supply side databases, and trend line and forecast reports that assist franchise development teams, investor groups and vendors to grow their business within the lodging industry. In 2017, Lodging Econometrics was honored by the Peter Paul School of Business at the University of New Hampshire as the most outstanding family business in New Hampshire.
In Ford’s acceptance speech he said, “My career has been chuck-a-block full of opportunities and blessings. Like any lifelong journey it’s required hard work and an ongoing dedication to personal growth. But those are the requirements of any successful journey. I’ve lived a charmed life! It’s been a great ride! The industry is in my blood and it will continue to stimulate my interest until the end.”
Timothy Ford Appointed President of Lodging Econometrics and New England Hotel RealtyPortsmouth, NH – Patrick Ford, Chairman of Lodging Econometrics (LE), the global leader for hotel real estate intelligence, and New England Hotel Realty (NEHR), the leading full-service hotel real estate advisory brokerage firm in the Northeast, announced today that Timothy Ford has been appointed President of both companies.
“Timothy is a proven leader who most recently served as Executive Vice President, where he was responsible for the company’s technology initiatives, the growth of our client services, overseeing the sales and marketing departments and most notably for taking LE’s trusted U.S. Business Development Programs and expanding them into every region and country worldwide. Incorporating the latest cutting-edge technology, he has also re-designed LE’s online business development program delivery systems, including our global database of hotel development records and portfolio of lodging real estate trend and management guidance reports for client sales teams,” said Ford.
In his new role as President, Timothy will be responsible for creating new business partnerships; continuing to incorporate the latest online technology into our research and deliverables; creating additional business development programs for our roster of franchise clients looking to accelerate their brand growth, hotel ownership and management groups seeking to expand their real estate portfolios, and lodging vendors wanting to increase their sales to the industry.
Ford continued, “it’s a terrific time for the lodging industry and an opportunistic time for our company. Timothy offers the right mix of outstanding vision and proven execution to continue moving our companies forward.”
“I am humbled and honored to be appointed as President, to provide the leadership for our strategic growth, and to continue to serve our clients with unmatched hotel real estate intelligence,” said Timothy Ford. “I look forward to working closely with the board and the LE and NEHR teams to further our vision for the years ahead.”
Ask the Experts
LE’s Lodging Real Estate and Market Intelligence Experts are happy to offer insights and support to journalists and media specialists reporting on the lodging real estate, lender and vendor industries. For media inquiries or specific information requests, please contact:
Director of Marketing Communications
News & Updates
Take the next step
Ask us how our customized Global
Business Development Programs and Trend Reports for Analysis
planning will help
you identify your
next big opportunity and accelerate your