LE: 3 franchise companies lead U.S. construction pipeline

Home2 Suites by Hilton San Francisco Airport North exterior
Hilton opened 125 hotels in the first half of 2019, including the Home2 Suites by Hilton San Francisco Airport North. Photo credit: Hilton

Marriott International led the U.S. construction pipeline in Q2, followed by Hilton and IHG, according to Lodging Econometrics’ second-quarter report. Year over year, Marriot’s pipeline increased 9 percent and both Hilton and IHG rose 3 percent.

As of the second quarter, Marriott had 1,469 projects and 193,458 rooms in its construction pipeline. Coming off last quarter’s all-time high, Hilton stood at 1,372 projects and 152,853 rooms. IHG followed with 962 projects and 97,647 rooms.

The leading brands for each of these three companies were: Fairfield by Marriott (300 projects/29,133 rooms), Home2 Suites by Hilton (413 projects/43,040 rooms) and IHG’s Holiday Inn Express (410 projects/38,814 rooms). Other noteworthy brands were Marriott’s Residence Inn by Marriott (207 projects/25,201 rooms) and TownePlace Suites by Marriott (206 projects/21,468 rooms); Hilton’s Tru by Hilton (312 projects/30,254 rooms) and Hampton by Hilton (301 projects/31,271 rooms); and IHG’s Avid Hotel (179 projects/16,316 rooms) and Staybridge Suites (156 projects/16,309 rooms). Together, these nine brands accounted for 44 percent of all projects in the total pipeline.

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Together, the three companies accounted for 70 percent of the new hotels opened in the United States during the first half of 2019. Hilton, with 125 hotels and 14,553 rooms, opened the most new hotels, while Marriott, at 120 hotels and 15,249 rooms, led the way in room count. IHG debuted 69 new hotels and 7,406 rooms in the first half of 2019.

Lodging Econometrics anticipates Marriott opening 285 hotels and 36,504 rooms in 2020; Hilton debuting 274 new locations and 30,099 rooms; and IHG adding 211 properties and 20,412 rooms.

In 2021, it forecasts Marriott still will lead the way at 328 new hotels and 40,841 rooms. However, it predicts IHG (284 hotels/27,810 rooms) will overtake Hilton (268 hotels/29,373 rooms) in total new projects. Should all these hotels open as expected, the three companies would account for 73 percent of all new hotels in 2021.