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.
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.
ALIS 2017: Development of the Year Award — March 21, 2017Each year Lodging Econometrics partners with the ALIS Conference to present the ALIS Development of the Year Award. This is the hotel industry’s Capstone Awards for development. It honors the top Full Service and Limited/Select Service Development Projects of the year. Please join us as LE’s JP Ford, CHB, ISHC and the ALIS Development of the Year Committee Chair, announces the winners of this year’s prestigious award.
The ALIS Conference www.ALISconference.com is the annual meeting place for hotel executives, investors, lenders, developers, analysts, and consulting communities in the hotel and tourism industry.
Marriott Has the Largest Hotel Construction Pipeline — February 27, 2017Analysts at Lodging Econometrics(LE) report that at year-end 2016, Marriott had the largest pipeline in the country of any franchise company with 1,301 Projects/167,641 Rooms. Since it’s acquisition of Starwood Hotels & Resorts, Marriott has added 10 full-service brands boosting its U.S. portfolio to 25 brands and increasing its Total Pipeline room count by 35%. Their largest brand in the Pipeline is Fairfield Inn which has 297 Projects/28,284 Rooms.
Of the Total Pipeline, Marriott has the most projects of any franchise company Under Construction with 471 Projects/65,924 Rooms, representing over 30% of all projects Under Construction in the U.S. Additionally, they have the most projects Scheduled to Start Construction in the Next 12 Months with 705 Projects/85,902 Rooms. Marriott also has 125 Projects/167,641 Rooms in Early Planning.
In the 4th quarter, Marriott had 86 projects Start Construction and announced 197 New Projects into the Pipeline. Both are the highest of any other franchise company. For New Hotel Openings, both Marriott & Hilton opened 79 new hotels each, also at a high.
Houston Has the Second Largest Hotel Construction Pipeline — February 24, 2017According to Lodging Econometrics (LE), following New York City, Houston has the second largest pipeline in the country with 169 Projects/18,373 Rooms. With its Pipeline continuing to grow, Houston is likely to top its previous peak of 171 total projects reached in 2008.
Of all markets, Houston has the most projects Scheduled to Start Construction in the Next 12 Months with 91 Projects/9,792 Rooms, 54% of its Total Pipeline. Houston also has the most projects in Early Planning with 37 Projects/3,748 Rooms. The remaining 41 Projects/4,833 Rooms are presently Under Construction.
With the economic impact of low oil prices, Iranian oil coming online and a decline in demand from China, drilling for oil in Texas has plummeted. As a result, Houston’s economy has been rocked. Some economic improvement is expected in 2017 as a bottoming is thought to have occurred. Consequently, in the last 2 years, occupancy has declined from 71.7% to a reported 62.3%. ADR fell 3.6% in 2016. RevPar declined both years and registered a whooping 12.4% Year-Over-Year decline in 2016. New supply growth rose 5.7%. Demand growth fell 3.9% while supply growth grew 5.7%. Houston has the largest demand/supply imbalance of all the top 25 markets. With a steady stream of new supply forecasted to come online, operating metrics are expected to continue their fall for the next two years.
New York City Has the Largest Hotel Construction Pipeline — February 23, 2017Analysts at Lodging Econometrics (LE) report that the New York City Hotel Construction Pipeline is at 192 Projects/30,541 Rooms, and continues to be the largest pipeline in the U.S. There are 101 Projects/17,711 Rooms Under Construction, the highest in the country, 63 Projects/9,019 Rooms Scheduled to Start Construction in the Next 12 Months while Early Planning stands at 28 Projects/3,811 Rooms. New York City has had the largest pipeline of any market in the country for 21 consecutive quarters.
Pipeline growth trends are likely to remain strong as NYC has consistently been in the top 3 markets for New Projects Announcements into the Pipeline and annualized Construction Starts for the last decade.
Top Markets for New Hotel Openings in 2017 — February 22, 2017According to a recent Construction Pipeline Trend Report from Lodging Econometrics (LE), the markets forecast to have the largest number of New Hotel Openings in 2017 are: New York with 64 Hotels/8,384 Rooms, Dallas with 43 Hotels/4,754 Rooms, Houston with 33 Hotels/3,312 Rooms. Austin is scheduled to open 3,380 Rooms and Denver, 2,740, both with 22 Hotels.
In 2017, 1,111 Hotels/120,372 Rooms are forecast to open in the U.S., up from 842 Hotels/98,990 Rooms in 2016. 373 Hotels/45,384 Rooms are scheduled to open in the Top 25 Markets in 2017, representing 32% of the hotels and 41% of the rooms forecasted to open throughout the country.
According to industry-wide operating metrics, in 2016 all Top 25 markets, with the exception of Houston, had demand growth in excess of supply growth. Additionally, Houston was only 1 of 2 markets showing a Year-Over-Year decrease in demand, and most importantly, the only market to report supply growth in excess of demand. A 3.9% decline in demand, an occupancy decrease of 9.1%, a falloff of 3.6% in ADR and a 5.7% increase in new supply combine for a dramatic drop of 12.4% in RevPar. Houston’s operating metrics are expected to continue to trend downwards over for the next few years.
Top Markets with the Largest Construction Pipelines — February 21, 2017Lodging Econometrics (LE) reports at that at year-end 2016 the five markets with the largest hotel construction pipelines by project count are: New York with 192 Projects/30,541 Rooms; Houston with 169 Projects/18,373 Rooms; Dallas with 140 Projects/17,291 Rooms; Nashville with 121 Projects/14,873 Rooms; and Los Angeles with 111 Projects/18,723 Rooms.
Since the fourth quarter of 2011, New York has continuously had the highest project count of any market in the Pipeline while Houston has had the second largest for the last thirteen quarters.
Future supply growth should be strong in these five markets for the next few years, particularly New York, Houston and Dallas which have been consistently amongst the Top 5 Markets with the largest number of New Project Announcements into the Pipeline.
New Supply Trends— February 17, 2017Lodging Econometrics (LE) reports that in 2016, 842 Hotels/98,990 Rooms opened in the United States, the most since 2009 and up from the 736 Hotels/82,094 Rooms reported in 2015. According to industry wide operating metrics, supply growth was a reported 1.6% in 2016, slightly below demand growth of 1.7%, meaning that demand has exceeded supply growth for the 7th consecutive year.
LE forecasts that New Hotel Openings will jump to 1,111 Hotels/120,372 Rooms in 2017. That should equate to a 2% supply increase in 2017. Unless there is some reversal in declining demand trends, aggregate supply growth in 2017 will exceed demand for the 1st time since 2010.
Moderate Growth Continues in the Hotel Construction Pipeline — February 16, 2017According to the year-end United States Construction Pipeline Trend Report from Lodging Econometrics (LE), the Total Construction Pipeline ended 2016 with 4,960 Projects/598,688 Rooms, up 12% by projects and 10% by rooms Year-Over-Year (YOY). Q4 2016 is the 19th consecutive quarter of pipeline growth, since the cyclical bottom of 2,720 Projects/331,129 Rooms reported in Q1 2012.
At year-end, there were 1,520 Projects/196,409 Rooms Under Construction, up by 208 projects YOY or 16%. Projects Scheduled to Start in the Next 12 Months, at 2,392 Projects/268,843 Rooms, were up 466 projects, 24%. Projects in Early Planning at 1,048 Projects/133,436 Rooms were down by 127 projects or 11% as some projects are rapidly migrating up the Pipeline towards Construction in anticipation of future interest rate increases. Construction Starts in 2016 at 1,166 Projects/142,563 Rooms were at an 8-year high.
New Project Announcements into the Pipeline during 2015-16 were at the highest levels since 2008, while Conversions were at a 10-year high. Reflecting a modestly improving economy, overall pipeline growth has been moderately up-trending since early 2012. Economic indicators suggest that the Pipeline may continue to grow for at least another two years.
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