New hotel supply is coming, and it's coming hard.
Lodging Econometrics' Global Construction Pipeline Trend Report shows that the total pipeline ended the first quarter with 11,904 projects and 1,974,439 rooms, up 6 percent by projects year-over-year.
There are 5,496 projects and 1,009,227 rooms under construction, up 4 percent by projects YOY. Projects scheduled to start construction in the next 12 months are up 17 percent with 3,753 projects and 532,814 rooms. Meanwhile, there are 2,655 projects and 432,398 rooms in the early planning phase, down 2 percent by projects YOY.
The leading franchise companies in the global construction pipeline by project-count are Marriott International with 2,159 projects and 363,672 rooms, Hilton Worldwide with 1,993 projects and 300,524 rooms, InterContinental Hotels Group with 1,336 projects and 204,991 rooms and Choice Hotels with 561 projects and 47,155 rooms. The leading brands for each of these companies are Marriott’s Fairfield Inn with 332 projects and 35,089 rooms, Hilton’s Hampton Inn with 547 projects and 65,211 rooms, IHG’s Holiday Inn Express with 595 projects and 72,113 rooms and Choice’s Comfort Suites with 127 projects and 10,596 rooms.
The top countries by room-count are the U.S. with 602,034 rooms and 5,032 projects and China with 534,285 rooms and 2,441 projects. The U.S. accounts for 30 percent of the rooms in the global pipeline while China accounts for 27 percent. As a result, 57 percent of the global pipeline being concentrated in just two countries. Meanwhile, the cities with the largest pipeline room-counts are Dubai with 35,882 rooms and 125 projects, New York with 29,447 rooms and 185 projects, Seoul with 27,084 rooms and 148 projects, Shanghai with 25,406 rooms and 133 projects and Guangzhou with 22,727 rooms and projects.