According to Lodging Econometrics’ "Q2 2022 Global Construction Pipeline Trend Report," which compiles the construction pipeline counts for every country and market around the world, the total global construction pipeline stands at 14,117 hotels and 2,293,131 rooms, up 5 percent by projects and 2 percent by rooms year over year.
As of the end of June, 6,074 hotels and 1,110,174 rooms were under construction. Projects scheduled to start construction in the next 12 months, at 3,664 hotels and 525,096 rooms, are up 1 percent by projects year over year and unchanged by rooms, while projects in early planning reached record-high project and room counts of 4,379 hotels and 657,861 rooms, up 22 percent by projects and 13 percent by rooms year over year. Conversions in the global hotel construction pipeline reached new highs in Q2, with 1,672 hotels and 206,355 rooms.
Top Markets
At the end of the second quarter, the top countries by project count are the United States with 5,220 hotels and 621,268 rooms and China with a current pipeline of 3,693 hotels and 701,974 rooms. The U.S. accounts for 37 percent of projects in the total global construction pipeline while China has 26 percent, resulting in 63 percent of all global projects being concentrated in these two countries. Distantly following are India with 339 hotels and 42,548 rooms, the United Kingdom with 309 hotels and 46,296 rooms and Indonesia with 284 hotels and 45,359 rooms.
Across the globe, the markets with the largest pipelines by project counts are Dallas with 173 hotels and 20,707 rooms; Chengdu, China with 141 hotels and 28,573 rooms; and Atlanta with 140 hotels and 18,131 rooms. Shanghai follows with 128 hotels and 25,200 rooms, and then Los Angeles with 124 hotels and 20,365 rooms.
Top Companies, Top Brands
The leading franchise company in the global construction pipeline is Hilton, with 2,596 hotels and 379,818 rooms. Marriott International follows closely with 2,533 hotels and 421,613 rooms. Next is InterContinental Hotels & Resorts with 1,687 hotels and 247,310 rooms, and Accor with 894 hotels and 155,577 rooms. These four franchise companies account for 55 percent of all projects in the pipeline. Brands leading the pipeline for each of these companies are Hampton by Hilton with 768 hotels and 100,732 rooms; Fairfield Inn with 343 hotels and 42,113 rooms; Holiday Inn Express with 610 hotels and 76,991 rooms; and Ibis by Accor with 250 hotels and 32,362 rooms.
The first half of 2022 saw a total of 803 new hotels with 121,029 rooms open around the world with an additional 1,653 hotels and 244,956 rooms scheduled to open by year-end. In 2023, 2,658 new hotels with 416,640 rooms are expected to open. For 2024, LE is forecasting 2,786 new hotels, accounting for 435,870 rooms, to open around the world.