Lodging 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.
Related Stories
Market Data | Jun 14, 2016
Transwestern: Market fundamentals and global stimulus driving economic growth
A new report from commercial real estate firm Transwestern indicates steady progress for the U.S. economy. Consistent job gains, wage growth, and consumer spending have offset declining corporate profits, and global stimulus plans appear to be effective.
Market Data | Jun 7, 2016
Global construction disputes took longer to resolve in 2015
The good news: the length and value of disputes in the U.S. fell last year, according to latest Arcadis report.
Market Data | Jun 3, 2016
JLL report: Retail renovation drives construction growth in 2016
Retail construction projects were up nearly 25% year-over-year, and the industrial and office construction sectors fared well, too. Economic uncertainty looms over everything, however.
Market Data | Jun 2, 2016
ABC: Nonresidential construction spending down in April
Lower building material prices, a sluggish U.S. economy, and hesitation among private developers all factor into the 2.1% drop.
Market Data | May 20, 2016
Report: Urban area population growth slows
Older Millennials are looking to buy homes and move away to more affordable suburbs and exurbs.
Market Data | May 17, 2016
Modest growth for AIA’s Architecture Billings Index in April
The American Institute of Architects reported the April ABI score was 50.6, down from the mark of 51.9 in the previous month. This score still reflects an increase in design services.
Market Data | Apr 29, 2016
ABC: Quarterly GDP growth slowest in two years
Bureau of Economic Analysis data indicates that the U.S. output is barely growing and that nonresidential investment is down.
Market Data | Apr 20, 2016
AIA: Architecture Billings Index ends first quarter on upswing
The multi-family residential sector fared the best. The Midwest was the only U.S. region that didn't see an increase in billings.
Building Technology | Apr 11, 2016
A nascent commercial wireless sensor market is poised to ascend in the next decade
Europe and Asia will propel that growth, according to a new report from Navigant.
Industry Research | Apr 7, 2016
CBRE provides latest insight into healthcare real estate investors’ strategies
Survey respondents are targeting smaller acquisitions, at a time when market cap rates are narrowing for different product types.
