Press & Media
Read recent LE press releases for an inside look at global lodging real estate news, regional and individual market insights, and growth trends for leading Franchises Companies and brands.
Forecast for New Supply — May 25, 2017In Q117, there were 513 Projects/57,1278 Rooms newly announced into the Hotel Construction Pipeline according to analysts at Lodging Econometrics (LE).
212 Hotels/24,122 Rooms opened in the U.S. in the first quarter. The majority of these opens, 93 Hotels/10,018 Rooms, were in Suburban locations. Almost half of the opens, 100 Hotels/12,856 Rooms were hotel properties with between 100-200 rooms. 79 of these hotels and 10,544 of the rooms, or 37%, were in a top 25 market.
For the remainder of the year, LE forecasts another 868 Projects/97,386 rooms to open for a Total of 1,080 Hotels/121,508 Rooms in 2017, a 22% increase over the Total number of openings last year. In 2018, LE forecasts an additional 1,283 Hotels/143,038 Rooms will open in the U.S.
Largest Chain Scale in the Pipeline are Upscale and Upper Midscale — May 23, 2017Analysts at Lodging Econometrics (LE) report that the Upper Midscale category is currently at 2,067 Projects/205,662 Rooms, and has the largest project count of any chain scale in the Total Pipeline. The second largest is Upscale, which currently has 1,246 Projects/161,229 Rooms. Together, the Upper Midscale and Upscale Pipelines comprise 66% of all projects in the Total Pipeline.
The brands with the largest number of projects in the Upper Midscale pipeline are; IHG’s Holiday Inn Express with 412 Projects/38,160 Rooms, Hilton’s Home2 Suites 344 Projects/36,074 Rooms and Marriott’s Fairfield Inn with 285 Projects/27,220 Rooms. In Upscale, the top brands are; Marriott’s Residence Inn with 188 Projects/23,725 Rooms, Marriott’s SpringHill Suites with 147 Projects/17,293 Rooms and Hilton Garden Inn with 135 Projects/17,914 Rooms.
As would be expected, these two chain scales are forecasted to have the highest guest room growth rates over the next 2 years. The Upper Midscale chain scale is forecasted to grow its guest room Census by 5.3% and Upscale by 5.7% in 2017, and by 6.3% and 5.8% in 2018, respectively.
Top Franchise Companies in the Construction Pipeline — May 18, 2017According to the recent Construction Pipeline Trend Report from Lodging Econometrics (LE), the franchise companies with the largest pipelines by rooms in Q117 are; Marriott with 163,063 Rooms/1,264 Projects, Hilton with 146,104 Rooms/1,279 Projects and IHG with 82,771 Rooms/795 Projects. These 3 franchise companies comprise 65% of all rooms in the Total Pipeline.
The largest brand for each of these companies are; Marriott’s Fairfield Inn with 27,220 Rooms/285 Projects, Hilton’s Home2 Suites with 36,074 Rooms/344 Projects and IHG’s Holiday Inn Express with 38,160 Rooms/412 Projects.
The franchise companies with the most New Project Announcements by rooms into the Pipeline in the first quarter were; Hilton with 18,387 Rooms/162 Projects, Choice with 8,118 Rooms/117 Projects and Marriott with 7,129 rooms/55 Projects. These companies represent 59% of all new rooms announced.
Marriott Has the Largest Construction Pipeline of any Franchise Company — May 17, 2017Marriott International currently has the largest and most active pipeline by room-count of any franchise company with 163,063 Rooms/1,264 Projects. Their largest brands in the Pipeline are; Fairfield Inn with 27,220 Rooms/285 Projects, Residence Inn with 23,725 Rooms/188 Projects and TownePlace Suites with 18,450 Rooms/180 Projects.
Marriott also has the most rooms currently Under Construction with 65,924 Rooms/487 Projects, which represents over 1/3 of all Pipeline rooms Under Construction. Additionally, they have the most rooms Scheduled to Start Construction in the Next 12 Months with 78,404 Rooms/637 Projects. And in Early Planning, Marriott has 17,117 Rooms/140 Projects.
In the first quarter, Marriott opened 64 new hotels with 7,187 rooms, just under 30% of all new rooms opened in Q117. The brands with the largest number of new hotels opened are Fairfield Inn with 1,499 Rooms/16 Hotels and Courtyard with 1,411 Rooms/13 Hotels.
Markets with the Largest Construction Pipeline — May 16, 2017Analysts at Lodging Econometrics (LE) report that the five markets with the largest hotel construction pipelines by project count are: New York with 185 Projects/29,447 Rooms; Houston with 158 Projects/17,475 Rooms; Dallas with 141 Projects/17,869 Rooms; Nashville with 124 Projects/15,614 Rooms; and Los Angeles with 111 Projects/17,701 Rooms.
New York has the most New Hotel Openings forecasted for 2017 of any market with 47 Hotels/7,534 Rooms.Then Dallas, which is forecasted to open 44 Hotels/5,050 Rooms, Houston with 33 Hotels/3,505 Rooms, Austin with 21 Hotels/2,321 Rooms and Los Angeles with 20 Hotels/4,202 Rooms.
The markets with the most New Project Announcements into the Pipeline in the first quarter were: Dallas with 18 Projects/2,282 Rooms, New York with 16 Projects/2,510 Rooms, Orlando with 14 Projects/1,837 Rooms, Tampa with 13 Projects/1,313 Rooms and Kansas City with 11 Projects/1,288 Rooms.
LE Announces Business Development Director of the Year Award— May 15, 2017J.P. Ford, ISHC, Senior Vice President of Lodging Econometrics (LE) is pleased to announce that Tom O’Gorman has received the Business Development Director of the Year Award for the company. The Award recognizes an individual with strong sales results and who has also demonstrated the highest levels of customer service, client satisfaction and has made exceptional contributions to LE sales initiatives over the past 12 months.
“Tom was the largest generator of global revenue last year. He goes the extra mile to understand our customer’s needs and wants and has consistently designed customized Real Estate Intelligence Programs that help those clients reach their sales growth goals and market penetration objectives in the lodging industry,” said J.P. Ford.
Tom brings a wealth of expertise to LE and the clients he serves. As Vice President of Business Development, Tom helps Vendors to the lodging industry identify new construction and product replacement opportunities that accelerate their sales growth goals. He also assists Ownership & Management Groups locate third-party asset management opportunities and pinpoint potential acquisition opportunities that expand their portfolios. Further, he has been able to assist private equity firms and REITS to better understand pipeline growth and how new supply plays a significant role in their asset and market analysis.
He delivers those growth opportunities to his clients through a customized Real Estate Intelligence Program that he designs according to the client’s specifications. The programs include a continuously updated Online Sortable Database containing comprehensive hotel records with complete decision-maker contact information and a Suite of Management Guidance and Real Estate Trend Reports for strategic planning.
“Tom has worked at LE for over five years in a variety of sales assignments. We are pleased to present the award to Tom for his stellar contributions within the last year. We look forward to his continued success with our company and the clients we serve,” said Ford.
Hotel Construction Pipeline Continues Moderate Growth — May 10, 2017Lodging Econometrics (LE) reports that the Q117 United States Construction Pipeline currently stands at 5,032 Projects/602,034 Rooms, up 13% by projects Year-Over-Year (YOY). There are 1,511 Projects/197,450 Rooms Under Construction, up by 155 projects YOY or 11%. Projects Scheduled to Start in the Next 12 Months, at 2,414 Projects/272,487 Rooms, were up 367 projects, 18%. Projects in Early Planning at 1,107 Projects/132,097 Rooms were up by 39 projects or 4%.
This is the 21st consecutive quarter of growth, but the Pipeline is still a distant 851 Projects/183,513 Rooms away from the Q208 peak of 5,883 Projects/785,547 Rooms. This moderate Pipeline growth can be attributed to the tightening of loan availability, the recent rise of interest rates with the expectation of more increases on the horizon and a slowing economy near full employment.
Global Pipeline Shows Steady Increase — March 28, 2017The Lodging Econometrics (LE) Global Construction Pipeline Trend Report stated that the Total Pipeline ended 2016 with 11,776 Projects/1,962,676 Rooms, up 6% by projects Year-Over-Year (YOY). There were 5,504 Projects/1,012,987 Rooms Under Construction, up 4% by projects YOY. Projects Scheduled to Start Construction in the Next 12 Months, at 3,675 Projects/516,709 Rooms, were up a strong 21% while projects in Early Planning at 2,597 Projects/432,980 Rooms were down 7% by projects.
The leading franchise companies in the Global Construction Pipeline by project-count are: Marriott International with 2,190 Projects/368,077 Rooms, Hilton Worldwide with 1,841 Projects/283,326 Rooms, InterContinental Hotels Group (IHG) with 1,351 Projects/209,208 Rooms and Choice Hotels with 488 Projects/42,933 Rooms. The leading brands for each of these companies are: Marriott’s Fairfield Inn with 342 Projects/35,703 Rooms, Hilton’s Hampton Inn with 489 Projects/57,222 Rooms, IHG’s Holiday Inn Express with 602 Projects/73,282 Rooms, and Choice’s Comfort Inn with 117 Projects/11,239 Rooms.
The top countries by room-count are the United States with 598,688 Rooms/4,960 Projects and China with 525,640 Rooms/2,340 Projects. The U.S. accounts for 30% of the rooms in the Global Pipeline while China accounts for 27%, resulting in 57% of the Global Pipeline being concentrated in just two countries.
The cities with the largest pipeline room counts are: Dubai with 32,899 Rooms/117 Projects, New York with 30,541 Rooms/192 Projects, Seoul with 30,456 Rooms/154 Projects, Shanghai with 23,252 Rooms/125 Projects and Sanya with 22,629 Rooms/60 Projects.
Moderate Decline of China’s Pipeline Continues — March 27, 2017The most recent China Hotel Construction Pipeline Trend Report states that the Total Pipeline is at 2,340 Projects/525,640 Rooms, down 7% by projects Year-Over-Year (YOY), according to Lodging Econometrics (LE).
There are 1,671 Projects/357,466 Rooms Under Construction, down 11% by projects YOY. Projects Scheduled to Start in the Next 12 Months, at 285 Projects/66,192 Rooms, are down by just one project while projects in Early Planning at 384 Projects/101,982 Rooms are up 12% by projects.
The largest global franchise companies in the China Construction Pipeline by project are: Marriott International with 234 Projects/67,883 Rooms, Hilton Worldwide with 230 Projects/63,088 Rooms and InterContinental Hotels Group (IHG) with 218 Projects/59,784 Rooms. The leading brands in the Pipeline for each of these companies are: Marriott Hotels with 50 Projects/16,069 Rooms, Hilton Hotels with 67 Projects/24,058 Rooms and IHG’s Holiday Inn Express with 68 Projects/15,291 Rooms.
The markets with the largest pipelines by project count are: Shanghai with 125 Projects/23,252 Rooms, Guangzhou with 100 Projects/20,129 Rooms, Suzhou with 88 Projects/17,166 Rooms and Chengdu with 82 Projects/20,765 Rooms.
Shanghai and Guangzhou have had the two largest pipelines for each of the last 11 quarters. They will also open the most hotels over the next 12 months; 56 Hotels/7,551 Rooms in Shanghai and 38 hotels with 5,322 rooms in Guangzhou.
Asia Pacific Pipeline Continues Moderate Decline — March 23, 2017According to analysts at Lodging Econometrics (LE), the most recent Asia Pacific Construction Pipeline Trend Report, excluding China, states that the Total Pipeline has 1,554 Projects/312,766 Rooms, down 2% by projects Year-Over-Year (YOY).
There are 844 Projects/174,302 Rooms Under Construction, up 3% by projects YOY. Projects Scheduled to Start Construction in the Next 12 Months are at 325 Projects/68,923 Rooms, up a strong 27%, while projects in Early Planning at 385 Projects/69,541 Rooms are down by 18%.
The top hotel companies in the Asia Pacific Construction Pipeline, excluding China, are: Marriott International with 238 Projects/53,986 Rooms, InterContinental Hotels Group (IHG) with 121 Projects/28,278 Rooms, and Hilton Worldwide with 70 Projects/15,281 Rooms. The largest brand in the Pipeline for each of the these companies are: Marriott Hotels with 29 Projects/7,930 Rooms, IHG’s Holiday Inn with 45 Projects/11,676 Rooms and Hilton Hotels with 24 Projects/6,102 Rooms.
The top three countries in the Asia Pacific Construction Pipeline, excluding China, are: Indonesia with 372 Projects/61,832 Rooms, India with 247 Projects/38,386 Rooms and South Korea with 182 Projects/40,339 Rooms. Cities with the largest pipelines are: Seoul with 154 Projects/30,456 Rooms, Jakarta with 112 Projects/20,410 Rooms, Kuala Lumpur with 48 Projects/11,752 Rooms and Tokyo with 48 Projects/10,946 Rooms.
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