According to the recently released "Q2 2022 United States Construction Pipeline Trend Report" from Lodging Econometrics, the franchise company leading the United States hotel construction pipeline is Marriott International with 1,355 hotels and 167,034 rooms, up 4 percent by projects year over year. Next is Hilton with 1,312 hotels and 147,780 rooms, an 8 percent year-over-year increase, and IHG Hotels & Resorts with 789 hotels and 79,701 rooms, up 2 percent by projects year over year. Current construction projects with these three franchise companies comprise 66 percent of the projects and 64 percent of the rooms in the total U.S. construction pipeline.
Marriott has the most projects under construction and scheduled to start within the next 12 months, with 249 hotels and 33,398 rooms and 653 hotels and 80,395 rooms respectively. Hilton has the most projects in the early planning stage of the pipeline, with 725 hotels and 78,879 rooms, these record high project and room totals for Hilton account for 32 percent of projects in the early planning stage.
The leading brands in the construction pipeline for the top three franchise companies at Q2 are Home2 Suites by Hilton with record-high counts of 465 hotels and 47,825 rooms and Holiday Inn Express by IHG with 299 hotels and 28,598 rooms. Hilton’s Hampton by Hilton brands follow, with project and room highs of 281 hotels and 28,591 rooms. Marriott’s TownePlace Suites is next, with project and room record-highs of 270 hotels and 25,340 rooms, followed by its Fairfield Inn brand, with 235 hotels and 21,885 rooms.
During the first half of 2022, 247 hotels with 28,116 rooms opened across the U.S. Of these openings, Marriott, Hilton and IHG branded hotels accounted for 70 percent with 172 new hotel openings and 20,365 rooms. Marriott opened 78 new hotels with 9,475 rooms, Hilton opened 64 new hotels with 7,901 rooms and IHG opened 30 new hotels with 2,989 rooms. LE is expecting these top franchise companies to open another 248 hotels with 30,756 rooms by the end of this year.
LE analysts forecast for new hotel openings in 2022 anticipates that Marriott will open 169 new hotels and 21,834 rooms, for a growth rate of 2.5 percent. Next is Hilton with 150 new hotels and 17,698 rooms for a growth rate of 2.3 percent, followed by IHG with 101 new hotels and 11,589 rooms forecast to open for a growth rate of 2.7 percent.
In 2023, Marriott is expected to open another 181 new hotels and 21,850 rooms for a growth rate of 2.4 percent. LE predicts Hilton will open 154 new hotels and 18,974 rooms, for a 2.5 percent growth rate by year-end 2023, while IHG is expected to see a 3.6 percent growth rate in 2023, with 153 new hotel projects, accounting for 15,650 rooms.
In LE’s forecast for new hotel openings in 2024, Marriott is forecast to open 227 hotels and 26,807 rooms for a growth rate of 2.9 percent. Hilton is expected to open 189 new hotels and 20,048 rooms, for a 2.5 percent growth rate by year-end 2024, and IHG is forecast to open 202 new hotel projects, accounting for 19,781 rooms for a 4.4 percent growth rate in 2024. All growth rates are by rooms.