In the most recent Construction Pipeline Trend Report for the United States (U.S.) from Lodging Econometrics (LE), at the close of 2022’s fourth quarter, the U.S. construction pipeline stands at 5,465 projects/650,626 rooms, up 14% by projects and 12% rooms Year-Over-Year (YOY).
In Q4, all stages of hotel construction in the U.S. experienced positive YOY growth. At the close of the quarter, there are 1,008 projects/135,492 rooms under construction, up 4% by projects and 3% rooms YOY. Projects scheduled to start construction in the next 12 months stand at 2,073 projects/235,222 rooms, up 14% by projects and 12% by rooms YOY. Projects and rooms in the early planning stage increased 18% and 17% YOY, respectively, reaching all-time high counts of 2,348 projects/279,912 rooms.
The 2023 outlook for the lodging industry looks strong, as it continues to recover from the lows experienced throughout the past two years. Although the U.S. and the hotel industry continue to face some economic challenges, travel and hotel bookings increased substantially during 2022 and the new construction pipeline in the U.S. continues to grow at a moderate pace with new project announcements and construction-starts increasing 35% YOY and 36% YOY, respectively. Hotel owners, investors, developers, and management groups see much opportunity in the year ahead.
At the end of the fourth quarter, brand conversion room counts reached record highs of 1,030 projects/102,162 rooms. The renovation pipeline also remained strong in Q4, reaching the highest project counts seen since Q1 2019, standing at 900 projects/148,105 rooms. Combined, renovation and conversion activity accounts for 1,930 projects/250,267 rooms, record-highs by projects and up 53% YOY by projects and 45% by rooms YOY.
Dallas, Atlanta lead the nation in hotel construction projects
The U.S. Markets with the greatest number of projects in the construction pipeline, at the end of the fourth quarter, are Dallas with 176 projects/20,790 rooms. Following are Atlanta with 145 projects/18,100 rooms, Los Angeles with 122 projects/19,419 rooms, Phoenix with 116 projects/16,229 rooms, and Nashville with 106 projects and 14,198 rooms.
Franchise companies topping the pipeline with the greatest project and rooms counts at Q4 are Marriott International with 1,490 projects/180,113 rooms, Hilton Worldwide with 1,378 projects/154,790 rooms, and InterContinental Hotels Group (IHG) with 789 projects/78,951 rooms.
The brands with the largest number of projects in the pipeline at Q4 close are Home2 Suites by Hilton, with 521 projects/53,735 rooms; Marriott’s TownePlace Suites with 320 projects/29,802 rooms; and InterContinental Hotels Group’s (IHG) Holiday Inn Express with 293 projects/27,817 rooms.
Throughout 2022, the U.S. opened 464 new hotels, accounting for 54,620 rooms, for a growth rate of 1.0%. LE analysts expect new hotel openings to increase in 2023 with 607 projects/72,665 rooms forecasted to open, representing a 1.3% supply increase; and in 2024, 722 projects/82,813 rooms are expected to open, for a 1.5% supply increase.
Related Stories
Hotel Facilities | Jul 17, 2017
This space hotel design from MIT won NASA’s graduate design competition
The project team consisted of MIT graduate students across five departments.
Mixed-Use | Jul 7, 2017
ZHA’s Mandarin Oriental hotel and residences employs ‘stacked vases’ design approach
The mixed-use tower will rise 185 meters and be located in Melbourne's Central Business District.
Hotel Facilities | Jul 5, 2017
It only took 26 days to complete construction on the Crowne Plaza Changi Airport hotel extension
PPVC techniques allowed the project to save time and manpower.
Hotel Facilities | Jun 29, 2017
Luxury, plant-covered hotel unveiled for site near the River Seine
Kengo Kuma is designing the hotel, which will feature a large garden and a plant-covered façade.
Hotel Facilities | Jun 28, 2017
This floating hotel in Sweden freezes in place during the winter
The hotel will feature a cold bath and be in a good location for viewing the northern lights.
Hotel Facilities | Jun 14, 2017
Finalists selected for Radical Innovation award
Original hospitality design concepts lean on enhancing traveler comfort and mobility.
Hotel Facilities | May 19, 2017
Beyond market niches: Designing hotels that can flex
There’s a shift from accommodating to specific market niches towards places that can adapt to changing moods and activities.
Hotel Facilities | May 18, 2017
Manchester modular hotel is constructed of shipping containers
The 220-room Holiday Inn Express hopes to be completed in less than 12 months.
Events Facilities | Apr 27, 2017
20-acre lagoon highlights $1.5 billion Paradise Park planned for Las Vegas
The Wynn Resorts board recently gave the go-ahead for the project, which may begin construction on its first phase as early as December.
Hotel Facilities | Apr 12, 2017
Hotels embrace place
Today’s hospitality environments emphasize unique, localized experiences to attract and engage guests.
