According to Lodging Econometrics’ fourth quarter 2022 "United States Construction Pipeline Trend Report," the franchise companies with the largest construction pipelines at the end of Q4 are led by Marriott International with 1,490 hotels and 180,113 rooms. Following Marriott is Hilton with 1,378 hotels and 154,790 rooms and IHG Hotels & Resorts with 789 hotels and 78,951 rooms. Combined, these three companies account for 67 percent of the projects and 64 percent of the rooms in the total pipeline.
At the close of the quarter, these top franchise companies also have the greatest number of projects and rooms in each stage of the U.S. construction pipeline. Marriott International closed Q4 2022 with the largest project count in the under construction stage with 266 hotels and 36,112 rooms, followed by Hilton with 252 hotels and 31,240 rooms and IHG with 141 hotels and 15,935 rooms currently under construction.
At the close of the fourth quarter, Marriott also leads with the most projects scheduled to start construction in the next 12 months with a record project count of 825 hotels and 97,176 rooms, followed by IHG with a project count of 460 hotels and 44,255 rooms, and Hilton with 303 hotels and 35,695 rooms.
Hilton closed Q4 with record-high project and room counts in the early planning stage, totaling 823 hotels and 87,855 rooms. Marriott currently has 399 hotels and 46,825 rooms in early planning and IHG closed the fourth quarter with 188 hotels and 18,761 rooms in the early planning stage.
The brands of each of these companies with the largest number of projects in the pipeline at Q4 are Hilton’s Home2 Suites with record high project and room counts of 521 hotels and 53,735 rooms; TownePlace Suites and Marriott’s Residence Inn brands also hit record project and room counts at Q4 with 320 hotels and 29,802 rooms and 258 hotels and 31,229 rooms, respectively. IHG’s Holiday Inn Express brand closed the quarter with 293 hotels and 27,817 rooms in the pipeline. Other prominent brands in the pipeline for these franchise companies are the Hampton by Hilton brands with 280 hotels and 28,670 rooms; Marriott’s Fairfield Inn with 240 hotels and 21,887 rooms; and IHG’s Avid Hotel brand with 133 hotels and 11,195 rooms.
For all of 2022, Marriott opened 131 new hotels and 16,643 rooms. Hilton opened 118 new hotels and 13,916 rooms and IHG opened 57 new hotels and 6,246 rooms.
LE analysts forecast Marriott will open the greatest number of new hotels in 2023 with 156 hotels and 19,755 rooms for a growth rate of 2.2 percent. Next is Hilton with 146 hotels and 17,290 rooms for a growth rate of 2.2 percent, followed by IHG with 90 hotels and 10,540 rooms for a growth rate of 2.5 percent. In 2024, LE forecasts that Marriott will open 193 hotels and 23,024 rooms. Hilton is expected to open 164 hotels and 18,639 rooms and IHG is expected to open 124 hotels with 11,713 rooms.