In the recently released quarterly United States Construction Pipeline Trend Report from Lodging Econometrics (LE), the franchise companies with the largest construction pipelines at the end of the second quarter of 2020 are Marriott International with 1,487 projects/195,952 rooms, followed by Hilton Worldwide with 1,395 projects/160,078 rooms, and InterContinental Hotels Group (IHG) with 920 projects/94,499 rooms. Combined these three companies account for 68% of the projects in the total pipeline; roughly the same percentage as the Q1’20 close.
Hilton’s Home2 Suites and IHG’s Holiday Inn Express continue to be the most prominent brands in the U.S. pipeline with 415 projects/43,336 rooms and 371 projects/35,539 rooms, respectively. Hampton by Hilton follows with 304 projects/31,365 rooms and then Marriott’s Fairfield Inn with 302 projects/29,251 rooms. These four brands combined represent an impressive 25% of the projects in the total pipeline.
Other notable brands in the pipeline for each of these franchise companies are Tru by Hilton with 298 projects/28,863 rooms; Marriott’s Residence Inn with 208 projects/25,520 rooms, SpringHill Suites with 184 projects/20,842 rooms, and TownePlace Suites with 207 projects/20,802 rooms; and then IHG’s Avid Hotel with 189 projects/17,090 rooms.
In the second quarter of 2020, LE recorded 580 conversion projects/66,852 rooms. Of these conversion totals, Best Western dominates with 150 conversion projects/13,482 rooms, alone claiming 25% of the conversion pipeline by projects. Following Best Western is Marriott with 79 projects/13,721 rooms, Hilton has 69 projects/11,279 rooms, and IHG recorded 50 projects/5,382 rooms. Best Western and these three franchise companies combined account for 66% of all the rooms in the conversion pipeline across the United States.
In the first half of 2020, 313 new hotels with 36,992 rooms opened across the United States. Of those openings, Marriott, Hilton and IHG collectively opened 69% of the hotels. Marriott opened 90 hotels 11,036 rooms, Hilton opened 82 hotels/8,728 rooms, and IHG opened 44 hotels/4,190 rooms.
Related Stories
Market Data | Nov 14, 2019
Construction input prices unchanged in October
Nonresidential construction input prices fell 0.1% for the month and are down 2.0% compared to the same time last year.
Multifamily Housing | Nov 7, 2019
Multifamily construction market remains strong heading into 2020
Fewer than one in 10 AEC firms doing multifamily work reported a decrease in proposal activity in Q3 2019, according to a PSMJ report.
Market Data | Nov 5, 2019
Construction and real estate industry deals in September 2019 total $21.7bn globally
In terms of number of deals, the sector saw a drop of 4.4% over the last 12-month average.
Market Data | Nov 4, 2019
Nonresidential construction spending rebounds slightly in September
Private nonresidential spending fell 0.3% on a monthly basis and is down 5.7% compared to the same time last year.
Market Data | Nov 1, 2019
GDP growth expands despite reduction in nonresident investment
The annual rate for nonresidential fixed investment in structures declined 15.3% in the third quarter.
Market Data | Oct 24, 2019
Architecture Billings Index downturn moderates as challenging conditions continue
The Architecture Billings Index (ABI) score in September is 49.7.
Market Data | Oct 23, 2019
ABC’s Construction Backlog Indicator rebounds in August
The primary issue for most contractors is not a lack of demand, but an ongoing and worsening shortage of skilled workers available to meet contractual requirements.
Multifamily Housing | Oct 16, 2019
A new study wonders how many retiring adults will be able to afford housing
Harvard’s Joint Center for Housing Studies focuses on growing income disparities among people 50 or older.
Market Data | Oct 9, 2019
Two ULI reports foresee a solid real estate market through 2021
Market watchers, though, caution about a “surfeit” of investment creating a bubble.
Market Data | Oct 4, 2019
Global construction output growth will decline to 2.7% in 2019
It will be the slowest pace of growth in a decade, according to GlobalData.
