LE: 3 companies make up majority of U.S. hotel pipeline

According to the quarterly "United States Construction Pipeline Trend Report" from Lodging Econometrics, the franchise companies with the largest construction pipelines at the end of Q3 2022 are led by Marriott International with 1,385 hotels and 168,725 rooms. Following Marriott is Hilton with 1,351 hotels and 152,383 rooms, and IHG Hotels & Resorts with 787 hotels and 79,382 rooms. Combined, these three companies account for 66 percent of the projects and 64 percent of the rooms in the total pipeline. Each company has seen growth year-over-year.

These three franchise companies also have the most projects and rooms in each stage of the construction pipeline. Marriott leads with the greatest number of projects in the under construction stage with 259 hotels and 35,946 rooms, then Hilton with 248 hotels and 31,698 rooms, and IHG with 135 hotels and 15,688 rooms currently under construction.

At the close of the third quarter, Marriott also leads with the most projects scheduled to start construction in the next 12 months with 739 hotels and 87,626 rooms, followed by IHG with 484 hotels and 46,957 rooms, and Hilton with 333 hotels and 38,043 rooms.

Hilton set record high project and rooms counts in the early planning stage at the Q3 close, totaling 770 hotels and 82,642 rooms. Marriott currently has 387 hotels and 45,153 rooms in early planning and IHG closed the quarter with 168 hotels and 16,737 rooms in the early planning stage.

Top Brands

The brands of each of these companies with the largest number of projects in the pipeline at the end of Q3 are Hilton’s Home2 Suites with 494 hotels and 50,809 rooms, IHG’s Holiday Inn Express with 297 hotels and 28,323 guestrooms and Marriott’s TownePlace Suites with 291 hotels and 27,329 rooms. Other prominent brands in the pipeline for these franchise companies are the Hampton by Hilton brands with 281 hotels and 28,543 rooms, Marriott’s Fairfield Inn with 238 hotels and 21,988 rooms and IHG’s Avid Hotel brand with 135 hotels and 11,445 rooms.

Through the end of the third quarter, Marriott opened 102 new hotels with 12,908 rooms. Hilton opened 90 new hotels with 10,834 rooms, and IHG opened 40 hotels and 4,120 rooms.

LE analysts forecast Marriott will open the most new hotels in 2023 with 168 hotels and 20,952 rooms. Next is Hilton with 136 new hotels and 17,049 rooms, followed by IHG with 89 new hotels and 9,588 rooms. In 2024, LE forecasts that Marriott will open 192 new hotels and 22,815 rooms. Hilton is expected to open 154 new hotels with 16,967 rooms and IHG is expected to open 142 new hotels and 14,596 rooms.