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
Modular Building | Jan 12, 2017
The largest modular construction hotel project in New York City is starting to get pieced together
The hotel’s 300 rooms are made from 210 prefabricated pods from Polcom Modular.
Hotel Facilities | Nov 15, 2016
Mountain Forest Hotel looks to restore the natural landscape while offering visitors 250 luxury rooms
The hotel looks to create a symbiosis between man, nature, and architecture.
Industry Research | Sep 28, 2016
Worldwide hotel construction shows modest year-over-year growth
Overall construction for hotel projects is up, but the current number of hotels currently being built has dipped slightly from one year ago.
Hotel Facilities | Sep 26, 2016
$75 million commercial tower and hotel proposed in downtown Atlanta
The tower would be built on a site currently occupied by a Hertz Car Rental and parking lot.
Sponsored | Coatings | Sep 22, 2016
Valspar helps diversify new project amongst iconic downtown Chicago buildings
The 26-story hotel spanning 96,000 square-feet needed a way to not only differentiate itself among the sea of other hotels and buildings lining the riverfront and downtown area, but also fit into the mix aesthetically.
Hotel Facilities | Sep 19, 2016
The Hotel at Oberlin becomes one of only five hotels to achieve LEED Platinum
The Hotel at Oberlin anchors the Peter B. Lewis Gateway Center, the cornerstone of Oberlin’s Green Arts District.
Hotel Facilities | Sep 15, 2016
Developer reveals plans for 175-room hotel across from Wrigley Field
The hotel will provide a four-star experience to guests during baseball season and, just as importantly, during the offseason.
Hotel Facilities | Sep 7, 2016
Fish out of water: The site of a Birdseye frozen-food factory in Gloucester, Mass., transforms into a seaside hotel
The construction of this 94-room hotel and conference center pitted tourism proponents against locals who want to preserve this historic city’s fishing heritage.
| Sep 1, 2016
HOTEL SECTOR GIANTS: A ranking of the nation's top hotel sector design and construction firms
Gensler, HKS, Turner Construction Co., The Whiting-Turner Contracting Co., Jacobs, and JBA Consulting Engineers top Building Design+Construction’s annual ranking of the nation’s largest hotel sector AEC firms, as reported in the 2016 Giants 300 Report.
Hotel Facilities | Aug 29, 2016
Artificial rainforest coming to Dubai hotel courtesy of ZAS Architects
The faux-rainforest will be located at The Rosemont Hotel & Residences Dubai.
