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.
Asia Pacific’s Construction Pipeline, Excluding China, Continues in a Topping Out Formation December 13, 2018According to a recent report from analysts at Lodging Econometrics (LE), Asia Pacific’s total construction pipeline, excluding China, remains near its high with 1,738 projects/367,886 rooms.
Projects currently under construction stand at 943 projects/211,361 rooms and projects scheduled to start construction in the next 12 months are at 389 projects/77,390 rooms. These two stages reached their peaks over the last four quarters. There are 406 projects/79,135 rooms in the early planning stage which peaked much earlier in 2015.
The pipeline is expected to decline in 2019 as the present development cycle cools. Construction starts have been declining for six quarters while new projects announcements into the pipeline have been declining for five quarters. These two metrics are the most significant for forecasting the future direction of the pipeline.
The Asia Pacific region had 274 new hotels/48,822 rooms open at the close of the third quarter, with another 71 new hotels/11,764 rooms expected to open in the 4th quarter, bringing the total forecast for new hotel openings to 345 by the end of 2018. The LE forecast anticipates that 388 projects/70,037 rooms are expected to open in 2019, and 406 projects/79,072 rooms in 2020, the highest levels since LE first began recording in 2007.
Countries with the largest pipelines in Asia Pacific, excluding China, are dominated by Indonesia, with 400 projects/67,977 rooms which accounts for 23% of Asia Pacific’s total pipeline. Next is India with 222 projects/33,785 rooms, then Japan with 203 projects/41,816 rooms. These countries are followed by Thailand with 143 projects/33,855 rooms and Malaysia with 132 projects/34,853 rooms.
Asia Pacific cities with the largest construction pipelines are led by Jakarta, Indonesia with 99 projects/18,820 rooms. Next is Seoul, South Korea with 74 projects/13,730 rooms and Tokyo, Japan with 62 projects/15,572 rooms. Bangkok, Thailand follows with 50 projects/11,662 rooms and then Kuala Lumpur, Malaysia with 49 projects/12,929 rooms.
The top four franchise companies, accounting for 40% of guest rooms in the total construction pipeline, are AccorHotels with 248 projects/53,196 rooms, Marriott International with 198 projects/45,870 rooms, and InterContinental Hotels Group (IHG), which set a new record high for the company, with 148 projects/33,177 rooms. Hilton Worldwide follows with 85 projects/18,978 rooms.
Top brands in Asia Pacific’s construction pipeline, excluding China, include AccorHotels’ Ibis brands with 62 projects/12,440 rooms and Novotel with 48 projects/10,807 rooms. Marriott International’s Courtyard has 33 projects/6,697 rooms, and the full-service Marriott Hotel has 24 projects/6,533 rooms. IHG’s Holiday Inn has 57 projects/13,715 rooms and Holiday Inn Express has 34 projects/6,838 rooms, while Hilton Worldwide’s DoubleTree has 30 projects/6,368 rooms and the full-service Hilton Hotel & Resort brand has 27 projects/6,919 rooms. Both the full-service Marriott Hotel and the full-service Hilton Hotel and Resort brand are at record highs for their respective companies.
Spotlight Market: Houston December 6, 2018
In the most recent Lodging Econometrics (LE) Hotel Construction Pipeline Trend report, LE states that Houston has a total of 150 projects/16,473 rooms in the construction pipeline, the third highest in the U.S. behind New York City with 170 rooms/29,630 rooms and Dallas with 157 projects/18,954 rooms.
In Houston, 45 projects/5,531 rooms are presently under construction, projects scheduled to start construction in the next 12 months are at 58 projects/6,031 rooms, and those in early planning are at 47 projects/ 4,911 rooms. If all of the projects in the pipeline eventually come to fruition, this will increase the city’s guest room supply by 19.2%.
Of the ten market tracts in Houston, the three with the largest hotel construction pipelines are: the George Bush Airport area with 26 projects/2,606 rooms; the Southwest Freeway area with 20 projects/1,941 rooms; and the Eastern part of Houston to include Baytown with 20 projects/1,653 rooms. These three important market tracts combined account for 44% of Houston’s total construction pipeline.
Houston should continue its fast-paced growth. For the first half of the year, it ranked fifth of all markets for the most new hotel projects announced into the pipeline, with 33 projects/3,721 rooms.
Spotlight Market: San Diego December 5, 2018
In the most recent Lodging Econometrics (LE) Construction Pipeline Trend report on San Diego, LE states that San Diego has a total of 37 projects/8,716 rooms in the construction pipeline.
Hotels presently under construction in San Diego are at 12 projects/1,861 rooms, projects scheduled to start construction in the next 12 months are at 16 projects/3,211 rooms, and those in early planning are at 9 projects/3,644 rooms. If all of the projects in the pipeline eventually come to fruition, this will increase the city’s guest room supply by 13.5%.
In the third quarter, San Diego announced 11 brand conversion projects totaling 1,128 rooms, making it the fourth largest market in the U.S for conversion activity. It is only surpassed by Atlanta with 20 projects, Phoenix with 14 projects, and Chicago with 13 projects. There are additionally another 12 projects/3,038 rooms that have announced renovations during this same time period.
The three market tracts with the largest hotel construction pipelines are: the San Diego Central Business District with 15 projects/4,294 rooms; the south and east portions of San Diego with 8 projects/2,574 rooms; and Carlsbad and Oceanside with 7 projects/1,058 rooms. These three important market tracts combined account for a whopping 81% of San Diego’s total construction pipeline.
San Diego is expected to grow modestly over the next few years. For the first half of the year, it has announced 6 new projects /2,339 rooms into the pipeline.
Spotlight Market: Chicago November 30, 2018
In the most recent Lodging Econometrics (LE) Construction Pipeline Trend report on Chicago, LE states that Chicago has a total of 68 projects/8,839 rooms in the construction pipeline. Year-over-Year (YOY) Chicago’s pipeline has declined 8% by projects and 15% by rooms.
Hotels presently under construction in Chicago are at 19 projects/3,125 rooms, projects scheduled to start construction in the next 12 months are at 23 projects/2,344 rooms, and those in early planning are at 26 projects/3,370 rooms. If all of the projects in the pipeline eventually come to fruition, this will increase the city’s guest room supply by 7.5%.
Chicago currently has 13 projects/1,923 rooms that have announced a brand conversion in the third quarter. This is the second largest market by rooms for conversions in the U.S. Chicago also ranks second by project count for renovations with 26 projects/5,506 rooms.
Chicago is expected to grow modestly over the next few years. For the first half of the year, it has announced 17 new projects /1,913 rooms into the pipeline.
Spotlight Market: Atlanta November 29, 2018
In the most recent Lodging Econometrics (LE) Construction Pipeline Trend report on Atlanta, LE states that Atlanta has a total of 108 projects/13,578 rooms in the construction pipeline, the sixth largest pipeline of any market in the U.S. Atlanta has grown 19% by projects and 20% by rooms Year-Over-Year (YOY).
Hotels presently under construction in Atlanta are at 32 projects/3,835 rooms, projects scheduled to start construction in the next 12 months are at 52 projects/6,220 rooms, and those in early planning are at 24 projects/ 3,523 rooms. If all of the projects in the pipeline eventually come to fruition, this will increase the city’s guest room supply by 13.4%.
Atlanta currently has 20 projects/2,175 rooms that have announced a brand conversion in the third quarter. This is the most conversions of any market in the U.S.
The three market tracts with the largest hotel construction pipelines are: Atlanta South with 21 projects/1,740 rooms; the Atlanta Central Business District with 15 projects/3,025 rooms; and the Alpharetta North portion of Atlanta with 14 projects/1,699 rooms. These three important market tracts combined account for 46% of Atlanta’s total construction pipeline.
Atlanta should continue its fast-paced growth. For the first half of the year, it has ranked third, tied with New York nationally, for the number of new hotel projects announced into the pipeline, with 36 projects/4,291 rooms.
Spotlight Market: Boston November 28, 2018
In the most recent Lodging Econometrics (LE) Construction Pipeline Trend report on Boston, LE states that Boston has a total of 58 projects/10,252 rooms in the construction pipeline. Year-over-Year (YOY) Boston’s pipeline has declined 13% by projects and 10% by rooms.
Hotel presently under construction in Boston are at 22 projects/4,251 rooms, projects scheduled to start construction in the next 12 months are at 23 projects/3,946 rooms, and those in early planning are at 13 projects/2,055 rooms. If all of the projects in the pipeline eventually come to fruition, this will increase the city’s guest room supply by 17.5%.
Boston currently has 5 projects/624 rooms that have announced a brand conversion in the third quarter and another 10 announced renovation projects totaling 1,744 rooms.
The three market tracts with the largest hotel construction pipelines are: the Boston Central Business District with 27 projects/6,618 rooms; Cambridge and Waltham with 10 projects/1,319 rooms; and Dedham and Marlborough with 8 projects/967 rooms. These three important market tracts combined account for a whopping 78% of Boston’s total construction pipeline.
Boston is expected to grow modestly over the next few years. For the first half of the year, it has announced 13 new projects /1,973 rooms into the pipeline.
Canada’s Construction Pipeline Projects Are at a Cyclical High November 16, 2018Analysts at Lodging Econometrics (LE) report that in the third quarter of 2018 the total construction pipeline in Canada stands at 247 projects/29,954 rooms. Construction pipeline projects are at a cyclical high with an increase of 19 projects year-over-year (YOY). Indications are that the pipeline is in a topping-out period. Total guest rooms in the pipeline appear to have peaked in the 3rd and 4th quarters of 2017, signaling the onset of further pipeline declines ahead. Other pipeline metrics that signal a possible decline are rooms under construction, rooms scheduled to start construction in the next 12 months, and new project announcements into the pipeline which have all been decreasing since fall of 2017.
Projects presently under construction are at 89 projects/10,781 rooms, of which 40 projects/4,283 rooms began construction in the first three quarters of 2018. Projects scheduled to start construction in the next 12 months are at 85 projects/9,893 rooms, a minimal 2% decline in project counts. Projects in the early planning stage show a 20% increase with 73 projects/9,280 rooms recorded. With the Bank of Canada expected to increase interest rates again in January, developers continue to hurry projects from their drawing board into the permitting and early planning phase.
In the first three quarters of 2018, Canada had 36 new hotel openings. LE’s forecast for new hotel openings predicts another 10 hotels will open in the last quarter of 2018, bringing the total to 46 new hotel openings. 2019 is forecast to see 54 projects/6,220 rooms open, and 2020 anticipates that 63 projects/6,873 rooms will open and come online as new supply, which should be the high for this cycle.
Marriott International leads the top hotel companies in Canada’s construction pipeline with 51 projects/7,176 rooms, followed by the InterContinental Hotel Group (IHG) with 45 projects/4,359 rooms, and Hilton Worldwide with 42 projects/5,157 rooms. These three companies make up 56% of the total construction pipeline.
The top brands in the pipeline are IHG’s Holiday Inn Express with 28 projects/2,839 rooms, Hilton’s Hampton Inn & Suites by Hilton with 18 projects/2,161 rooms, Marriott’s Courtyard with 10 projects/1,509 rooms and TownePlace Suites with 10 projects/995 rooms, and Hyatt Hotel’s Hyatt Place with 9 projects/ 1,266 rooms.
Markets with the most projects in the pipeline are Toronto with 40 projects/5,250 rooms, Calgary with 15 projects/2,225 rooms, Edmonton with 13 projects/1,948 rooms, Ottawa with 11 projects/ 1,909 rooms, and Vancouver with 11 projects/ 1,290 rooms.
The Middle East’s Hotel Construction Pipeline Hits A New Cyclical High November 15, 2018Analysts at Lodging Econometrics (LE) report that in the third quarter of 2018 the hotel construction pipeline in the Middle East has set another cyclical high with the total pipeline standing at 617 projects/180,097 rooms. The new pipeline project counts are up 8% while room counts show a 15% increase year-over-year (YOY) when the pipeline stood at 572 projects/156,420 rooms.
Projects presently under construction are at 360 projects/115,222 rooms and are at a record high. Projects scheduled to start construction in the next 12 months are at 138 projects/35,299 rooms, and projects in the early planning stage are at 119 projects/29,576 rooms.
The pipeline has grown for five consecutive years off of the 2013 lows and has surpassed the development surge of 2007-08 led by Dubai and Abu Dhabi which awakened hotel development in the region. However, growth trends may be starting to slow as construction starts and new projects announced into the pipeline have been declining throughout 2018.
Countries with the greatest number of projects in the construction pipeline are the United Arab Emirates with 223 projects/63,734 rooms and Saudi Arabia, at a record high, with 214 projects/76,324 rooms. Qatar follows with 59 projects/14,245 rooms and Egypt with 43 projects/10,237 rooms. Continuing to dominate the construction pipeline in the U.A.E. and throughout the region is Dubai with 169 projects/50,420 rooms. Other notable but distantly following emirate countries are Abu Dhabi with 20 projects/5,058 rooms and Ash-Shariqah with 18 projects/2,671 rooms.
Cities with the largest hotel construction pipelines are Riyadh with 61 projects/11,574 rooms, the Provincial region with 58 projects/11,534 rooms, Jeddah with 58 projects/11,520 rooms, Doha, Qatar with 55 projects/12,618 rooms and Makkah with 37 projects/41,696 rooms. Four of the cities with the largest pipelines are in Saudi Arabia and are enjoying record highs in their pipeline project and room counts.
AccorHotels is the top company in the Middle East having the largest construction pipeline with 102 projects/28,079 rooms, a record high for the company. Marriott International follows with 95 projects/21,083 rooms, and Hilton Worldwide, also reached record highs in 2018, with 90 projects/25,888 rooms.
The leading pipeline brands for these companies are AccorHotels’ Ibis brands with 18 projects/5,861 rooms, and Novotel, with 16 projects/5,204 rooms, a record high; Marriott’s Courtyard with 21 projects/4,476 rooms, and Residence Inn with 16 projects/1,877 rooms, both of which are also recording their highest pipeline counts; Hilton’s full-service Hilton Hotel & Resort with 26 projects/9,280 rooms, and DoubleTree by Hilton with 25 projects/5,873 rooms.
The Middle East at 291 rooms per construction project, has the largest average project size in the pipeline of any region in the world as 67% of its pipeline is concentrated in the three highest chain scales: luxury, upper upscale, and upscale.
LE expects that new hotel openings in 2018 will be 86 hotels/23,464 rooms, surpassing for the first time the peak of 72 hotels/19,756 rooms set in 2009 following the 2007-08 development surge. New records will be set in both 2019 and 2020 as LE’s forecast for new hotel openings predicts that 114 hotels/27,518 rooms and 134 hotels/36,277 rooms will open in each year.
Europe’s Hotel Construction Pipeline Continues to Boom November 13, 2018In the recent report by Lodging Econometrics’ (LE), Europe’s total construction pipeline, which is in a three-year surge, stands at 1,449 projects/228,588 rooms. There are 749 projects/120,689 rooms currently under construction, 395 projects/61,707 rooms planning to start construction in the next 12 months, and 305 projects/46,192 rooms in the early planning stage. The total pipeline increased a robust 18% by projects and 21% by rooms year-over-year (YOY). In addition, each of the three project stages are at or near the highest project and room counts since LE began recording in the region in 2008.
Accordingly, the LE forecast for new hotel openings anticipates a concomitant increase in new hotels coming on line as new supply over the next several years. 289 new hotels/38,124 rooms have opened year-to-date, and 88 projects/11,954 rooms are expected to open in the fourth quarter, for a total of 377 new hotel openings/50,078 rooms for 2018, the highest number of new hotel openings ever recorded by LE. In the years following, 2019 is forecast to have 390 new hotels open/58,364 rooms, and 390 hotels/58,599 rooms to come online in 2020.
Europe’s top hotel companies in the construction pipeline are AccorHotels, at an all-time high, with 225 projects/29,613 rooms, Marriott International with 186 projects/31,192 rooms, Hilton Worldwide with 170 projects/26,988 rooms, and InterContinental Hotels Group (IHG) with 139 projects/23,540 rooms. These four companies make-up 50% of the total hotel construction pipeline in Europe. That percentage is expected to rise as some 21% of the projects in the pipeline have yet to choose a brand.
The leading brands for each of these top companies are AccorHotel’s Ibis brands with 118 projects/14,635 rooms, Mercure Hotel with 25 projects/2,346 rooms, and Adagio City Aparthotel with 22 projects/2,976 rooms; Marriott International’s Moxy with 58 projects/10,227 rooms, Courtyard by Marriott with 33 projects/5,943 rooms, and the Autograph Collection with 15 projects/2,031 rooms. In addition, Hilton Worldwide has Hampton Inn with 67 projects/ 10,447 rooms, Hilton Garden Inn with 46 projects/7,316 rooms, DoubleTree by Hilton with 22 projects/3,132 rooms; and IHG’s Holiday Inn Express with 65 projects/9,813 rooms, Holiday Inn with 36 projects/7,981 rooms, and Hotel Indigo with 14 projects/1,733 rooms. AccorHotels and Hilton’s pipelines are at new highs while Marriott and IHG are very close to their cyclical highs.
Europe’s leading countries in the construction pipeline are Germany with 265 projects/49,640 rooms, the United Kingdom with 256 projects/39,008 rooms, France with 144 projects/17,003 rooms, Portugal with 87 projects/9,012 rooms, and Poland with 86 projects/13,134 rooms. With the exception of the United Kingdom, these markets all have construction pipelines at cyclical highs.
The European cities with the largest pipelines are London with 82 projects/14,663 rooms, Paris with 45 projects/6,947 rooms, Dusseldorf with 40 projects/8,353 rooms, and Frankfurt with 30 projects/6,228 rooms. Followed by Lisbon with 30 projects/2,800 rooms, Istanbul with 29 projects/5,386 rooms, and Moscow with 29 projects/6,512 rooms.
Leading Markets in The U.S. Construction Pipeline November 12, 2018In the third quarter of 2018, analysts at Lodging Econometrics (LE) report that the top five markets with the largest total hotel construction pipelines are: New York City with 170 projects/29,630 rooms; Dallas with 157 projects/18,954 rooms; Houston with 150 projects/16,473 rooms; Los Angeles with 141 projects/24,129 rooms; and Nashville with 115 projects/15,179 rooms.
Projects already under construction and those scheduled to start construction in the next 12 months, combined, have a total of 3,782 projects/213,798 rooms and are at cyclical highs. Markets with the greatest number of projects already in the ground and those scheduled to start construction in the next 12 months are New York with 145 projects/24,675 rooms, Dallas with 112 projects/13,854 rooms, Houston with 103 projects/11,562 rooms, Los Angeles with 92 projects/14,249 rooms, and Nashville with 88 projects/12,322 rooms.
In the third quarter, Los Angeles has the highest number of new projects announced into the pipeline with 22 projects/6,457 rooms. Detroit follows Los Angeles with 18 projects/1,937 rooms, Dallas with 14 projects/1,529 rooms, New York City with 12 projects/1,857 rooms, and then Atlanta with 12 projects/1,354 rooms.
Reflecting the strong cyclical highs in the pipeline, LE’s forecast for new hotel openings will continue to rise in 2018-2020. In 2018, New York City tops the list with 29 new hotels expected to open/5,351 rooms, Dallas with 29 projects/3,187 rooms, Houston with 27 projects/3,259 rooms, Nashville with 22 projects/3,018 rooms, and Los Angeles with 12 projects/2,152 rooms. In the 2019 forecast, New York continues to lead with the highest number of new hotels expected to open with 59 projects/8,964 rooms followed by Houston with 31 projects/3,098 rooms and Dallas with 30 projects/3,379 rooms. In 2020, Dallas is forecast to take the lead for new hotel openings with 41 projects/4,809 rooms expected to open, followed by New York with 36 projects/5,978 rooms, and Los Angeles with 33 projects/4,292 rooms expected to open.
With the exception of New York City and Houston, the other markets mentioned in the opening show that supply growth has begun to surpass demand. The variances in 2018 year-to-date are small but are certain to widen in the next two years, given the strength of these pipeline in the markets.
All in all, 10 of the top 25 markets show supply growth minimally exceeding demand growth in 2018.
Franchise Companies and Brands Dominating the U.S. Construction Pipeline November 9, 2018According to the third quarter report by analysts at Lodging Econometrics (LE), the franchise companies dominating the U.S. construction pipeline with the largest pipelines are Marriott International with 1,380 projects/181,907 rooms, Hilton Worldwide with 1,350 projects/150,698 rooms, and InterContinental Hotels Group (IHG) with 939 projects/95,312 rooms. The construction pipelines for these three franchise companies comprise an impressive 68% of the total construction pipeline projects with Marriott and Hilton again setting all-time highs for their companies.
The leading brands by project count in the construction pipeline for each of these three companies are IHG’s Holiday Inn Express with 422 projects/39,667 rooms, Hilton’s Home2 Suites by Hilton with 401 projects/41,958 rooms, and Marriott’s Fairfield Inn with 284 projects/27,678 rooms. These three mid-market brands are so dominant that they alone account for 21% of the projects in the total construction pipeline.
Other significant brands in the pipeline for each of these franchises are: Hilton’s Tru by Hilton with 302 projects/29,245 rooms and Hampton Inn and Suites with 300 projects/31,013 rooms; Marriott’s TownePlace Suites with 207 projects/21,525 rooms and Residence Inn with 204 projects/25,014 rooms; and IHG’s Staybridge Suites with 147 projects/15,427 rooms and Avid Hotel with 142 projects/13,160 rooms.
U.S. Construction Pipeline Continues on a Modest Growth Trajectory November 8, 2018Analysts at Lodging Econometrics (LE) report that in the third quarter of 2018 the total U.S. construction pipeline stands at 5,376 projects/650,576 rooms, up 7% from 2017’s 5,011 projects/608,837 rooms. The total pipeline has been growing modestly over the past two years and is expected to continue its ascent at least into the first quarter of 2019. However, pipeline totals are still distant from the all-time high of 5,883 projects/785,547 rooms reached in the second quarter of 2008 and are not expected to reach those records again this cycle.
Projects in the early planning stage with 1,594 projects/ 84,031 rooms are up significantly, 31% by projects and 23% by rooms year-over-year (YOY). Big jumps are typical for the back-end of a hotel real estate cycle when developers rush to move projects from the drawing board to the pipeline before further interest rate hikes, the rising cost of building materials and the continued struggle to secure skilled labor take effect.
Projects scheduled to start construction in the next 12 months, with 2,144 projects/253,102 rooms, are near even YOY. Projects currently under construction are at 1,638 projects/213,443 rooms, while the highest count for this cycle, they are up only modestly YOY.
The announced renovation and conversion pipeline has expanded significantly with the total pipeline at 1,767 projects/273,443 rooms, it is the largest count that LE has ever recorded. These numbers show a remarkable 30% increase by projects and 27% increase by rooms, YOY. The surge in announced renovation and conversion counts can also be seen quarter-over-quarter with a 25% increase in both projects and rooms since the second quarter of 2018.
Lodging Econometrics’ Patrick H. Ford Receives Lifetime Achievement Award at The Lodging Conference July 11, 2018October 2, 2018 – PORTSMOUTH, NH – Patrick H. Ford, Chairman, CEO, and Founder of Lodging Econometrics (LE) and New England Hotel Realty (NEHR) of Portsmouth, NH, has received the 2018 Lifetime Achievement Award for the hospitality industry, which was presented at The Arizona Biltmore on September 25, 2018. The Lodging Conference’s founder and producer, Harry Javer and hospitality veteran Michael A. Leven, chairman and CEO of Georgia Aquarium, presented the award to Ford. Nearly two thousand industry members were in attendance at this year’s conference.
The prestigious Lifetime Achievement Award recognizes an individual who has provided outstanding, life-long contributions to the hospitality industry. In a career spanning more than 50 years, Pat Ford began his career with the Dunfey Hotel Company, the predecessor to the Omni Hotel Company, where he spent 20 years in a variety of operational and executive roles. He then created and developed New England Hotel Realty as the largest, full-service hotel brokerage firm in the Northeast. In 1995, at the urging of a number of hotel companies and Wall Street Investment Firms, he founded Lodging Econometrics (LE) to compile lodging development and transaction data for the U.S.
Within two years, LE replicated their development research programs in every country of the world. Shortly thereafter, LE positioned away from solely being a data provider towards being a lodging sales and marketing specialty firm as well as providing a variety of customized new hotel construction and supply side databases, and trend line and forecast reports that assist franchise development teams, investor groups and vendors to grow their business within the lodging industry. In 2017, Lodging Econometrics was honored by the Peter Paul School of Business at the University of New Hampshire as the most outstanding family business in New Hampshire.
In Ford’s acceptance speech he said, “My career has been chuck-a-block full of opportunities and blessings. Like any lifelong journey it’s required hard work and an ongoing dedication to personal growth. But those are the requirements of any successful journey. I’ve lived a charmed life! It’s been a great ride! The industry is in my blood and it will continue to stimulate my interest until the end.”
Global Construction Pipeline Projects Have Been Ascending for 4.5 Years and Have Reached Record Highs September 21, 2018Lodging Econometrics (LE) has released its bi-annual Global Construction Pipeline Trend Report, which compiles the construction pipeline counts for every country and market around the world, states that the total global construction pipeline stands at 12,839 projects/2,158,422 rooms which are at all-time highs. The construction pipeline is up an extraordinary 86% by projects over the cyclical low established in 2011 when global counts were at 6,907 projects/1,257,296 rooms.
There are 5,988 projects/1,133,017 rooms currently under construction worldwide. Projects scheduled to start construction in the next 12 months are at 3,945 projects/570,731 rooms, both counts are at record highs. Projects in the early planning stage stand at 2,906 rooms/454,674 projects, just 134 projects short of the record high established in the fourth quarter of 2017.
The top countries by project count are the United States, which has been rising since 2011, with 5,312 projects/634,501 rooms and China with 2,523 projects/556,645 rooms which has been topping out for the last 4.5 years. The U.S. accounts for 41% of projects in the total global construction pipeline while China accounts for 20%, resulting in 61% of projects in the global pipeline being concentrated in just these two countries. Distantly following are Indonesia with 394 projects/66,759 rooms, Germany with 247 projects/47,155 rooms, and the United Kingdom with 247 projects/36,487 rooms.
The cities with the largest pipeline counts are New York with 169 projects/29,365 rooms, Dubai with 163 projects/47,783 rooms, and Dallas with 156 projects/18,908 rooms. Followed by Houston with 150 projects/16,321 rooms, and Shanghai with 121 projects/24,759 rooms. Of the top 10 cities having pipelines with more than 100 projects, 6 are located in the U.S. while 3 are located in China.
The leading 5 franchise companies in the global construction pipeline by project count are Marriott International with 2,324 projects/391,058 rooms, Hilton Worldwide with 2,202 projects/327,723 rooms, InterContinental Hotels Group (IHG) with 1,653 projects/244,038 rooms, AccorHotels with 809 projects/147,647 rooms, and Choice Hotels with 1,024 projects/84,350 rooms. Hyatt, at 212 rooms/45,117 projects, is also significant with their portfolio of large luxury and upper upscale projects as well Best Western with 275 projects/29,243 rooms which are concentrated in the middle three chain scales.
The twenty-five-year explosion of hotel brands now totals 610 globally. Marriott leads with 29 labels, followed by Accor with 25, Hilton with 15 each, IHG and Hyatt with 12 each, and Choice with 11 brands.
Leading pipeline brands for each of these companies are Marriott’s Fairfield Inn with 345 projects/37,224 rooms, Hilton’s Hampton Inn with 604 projects/77,193 rooms, IHG’s Holiday Inn Express with 713 projects/88,689 rooms, AccorHotels ibis Brands with 358 projects/53,387 rooms, and Choice’s Comfort brands with 322 projects/26,878 rooms.
As a result of record pipeline totals, new hotel openings continue to hit record levels. In 2020, totals could reach a lofty 3,000 new hotel openings, approximately 1,250 of them being in the U.S.
Asia Pacific’s Construction Pipeline, Excluding China, is in its 5th Year of Growth and May Be Nearing its Peak September 14, 2018In a recent report, analysts at Lodging Econometrics (LE) report that Asia Pacific’s total construction pipeline, excluding China, is in its 5th year of growth and is at an all-time high of 1,749 projects/369,045 rooms. These pipeline totals are up a remarkable 306% by rooms and 270% by projects from the cycle’s low of 473 projects/90,946 rooms recorded in the first quarter of 2007 when LE first began tracking development in Asia.
Countries in the region are facing strong economic headwinds. Economies are slowing and many currencies compared to the dollar are falling, adversely affecting real estate investment. The evidence suggests that the pipeline peak may soon be near.
At the end of the second quarter, projects currently under construction soared to a record high 968 projects/215,523 rooms, as developers rushed to get their projects in the ground. Projects scheduled to start construction in the next 12 months stand at 379 projects/74,556 rooms and projects in the early planning stage stand at 402 projects/78,966 rooms.
The Asia Pacific region had 173 new hotels/30,332 rooms open in the first half of the year, with another 187 new hotels expected to open in the second half, bringing the total forecast for new hotel openings to 360 by the end of 2018. The LE forecast anticipates new hotel openings to continue ascending with 385 new hotels expected to open in 2019 and 399 in 2020.
Top countries in Asia Pacific’s construction pipeline, excluding China, continue to be led by Indonesia with 394 projects/66,759 rooms. India follows with 214 projects/33,535 rooms, then Japan with 206 projects/41,146 rooms. Next are Thailand with 142 projects/34,381 rooms and Malaysia with 140 projects/37,332 rooms, both Thailand and Malaysia show construction pipeline counts at all-time highs.
Cities in the Asia Pacific region with the largest construction pipelines include Jakarta, Indonesia with 101 projects/19,325 rooms; Seoul, South Korea with 80 projects/15,490 rooms; Tokyo, Japan with 67 projects/15,322 rooms; Kuala Lumpur, Malaysia with 57 projects/14,974 rooms; and Bangkok, Thailand with 52 projects/11,975 rooms.
The top four franchise companies, accounting for 40% of guest rooms in the total construction pipeline, are AccorHotels with 223 projects/47,221 rooms and Marriott International with 210 projects/48,325 rooms. InterContinental Hotels Group (IHG) with 147 projects/33,616 rooms follows along with Hilton Worldwide’s 86 projects/18,997 rooms. Both IHG and Hilton show double-digit pipeline growth YOY and their counts are at record highs.
Top brands in Asia Pacific’s construction pipeline, excluding China, include AccorHotels’ Ibis brands with 74 projects/14,811 rooms and Novotel with 46 projects/10,765 rooms. Marriott International’s Courtyard has 30 projects/5,927 rooms and Sheraton has 27 projects/6,560 rooms. IHG’s Holiday Inn has 58 projects/14,288 rooms and Holiday Inn Express has 34 projects/6,968 rooms, while Hilton Worldwide’s DoubleTree has 31 projects/6,474 rooms and the full-service Hilton Hotel & Resort has 27 projects/6,719 rooms. IHG’s Holiday Inn and Hilton’s DoubleTree and full-service Hilton Hotel brands are also at record highs.
China’s Hotel Construction Pipeline Totals are in a Record-Setting 4.5 Year Topping Out Formation, While Major Brands Are Hitting All-Time Highs September 14, 2018According to analysts at Lodging Econometrics (LE), the total China construction pipeline stands at 2,523 projects/556,645 rooms. At the second quarter, the 2018 construction pipeline is slightly less than the all-time high of 2,658 projects/557,716 rooms set in the fourth quarter of 2014 and is up 5% by projects year-over-year (YOY).
Projects presently under construction are at 1,814 projects/389,328 rooms, projects starting construction in the next 12 months are at 367 projects/78,361 rooms, and projects in the early planning stage are at 342 projects/88,956 rooms.
Despite an economic slowdown, a falling stock market, and continued concerns about a possible war on tariffs, pipeline totals remain at or near all-time highs, as the hotel construction boom continues.
New hotel openings in the first half of 2018 were 173 hotels/35,585 rooms. The LE forecast for new hotel openings expects another 461 projects/71,788 rooms to open in the second half of 2018, bringing expected new hotel openings to 634 projects/107,373 rooms by year-end 2018. In the years following, 548 new hotel openings are expected in 2019 and 540 in 2020.
With major global brands developing hotels at a record pace in the period between 2016-2020, new hotel openings will have skyrocketed in size from an average of 144 rooms in 2016 to 244 rooms in 2020. This shift is characterized by far fewer small economy scale projects in the pipeline and an increase of larger upper upscale projects, many of which are part of mixed-use developments.
Shanghai and Guangzhou continue to lead China’s total construction pipeline with 121 projects/24,759 rooms, and 108 projects/26,022 rooms, respectfully. Guangzhou’s construction pipeline is at an all-time high. The city has shown continued growth, rising to a 300% increase in projects since the pipeline bottomed in the second quarter of 2008 with a mere 27 projects. These cities are followed by Chengdu with 88 projects/20,051 rooms; Hangzhou with 79 projects/17,904 rooms; and Suzhou with 74 projects/14,597 rooms.
Top franchise companies in China’s construction pipeline are all hitting record highs. They are led by Hilton Worldwide with 375 projects/84,964 rooms; InterContinental Hotels Group (IHG) with 314 projects/74,611 rooms; and Marriott International with 285 projects/79,663 rooms. These three companies make up an impressive 43% of rooms in the total hotel construction pipeline.
The leading brands in the construction pipeline for these companies are Hilton’s Hampton Inn with 185 projects/28,590 rooms and DoubleTree with 59 projects/19,784 rooms; IHG’s Holiday Inn Express with 137 projects/26,402 rooms and Holiday Inn with 61 projects/16,412 rooms. The leading brand for Marriott International is the full-service Marriott Hotel & Resort with 66 projects/20,531 rooms. All of these brands are at record highs.
The Latin America Hotel Construction Pipeline Continues Decline from its 2016 Peak August 20, 2018According to the recent Latin America construction pipeline trend report from Lodging Econometrics (LE), the total construction pipeline has 750 projects/129,351 rooms, the lowest number of projects in the pipeline since the fourth quarter of 2013. Trendline analysis suggests that peak construction activity in Latin America occurred in 2015-2016 and the construction pipeline has now begun a cyclical decline.
The cyclical decline is most notable in Brazil, which has historically accounted for more than half of the region’s pipeline. Brazil’s pipeline peaked in the first quarter of 2015 at 453 projects/79,431 rooms and now stands at just 212 projects/34,559 rooms. Lessor declines but still of note are also evident in Panama, Argentina, and Jamaica.
In Latin America, there are 363 projects/63,607 rooms presently under construction, projects scheduled to start construction in the next 12 months are at 207 projects/32,305 rooms, and projects in early planning are at 180 projects/33,439 rooms.
Only 94 projects/16,024 rooms started construction in the first half of 2018. New projects announced into the pipeline during the first half of 2018 are down -38% with only 114 projects/17,595 rooms compared to the 177 projects/28,533 rooms announced in the first half of 2017.
In the first half of 2018, Latin America had 61 new hotels open, the lowest level since the first half of 2014 which had 59 new hotels open. The LE forecast for new hotel openings calls for another 106 new hotels to open in the second half of the year bringing the total to 167 by the year-end. This is a downturn from the 180 new hotel openings seen in 2017 and 187 in 2016. The forecast for 2019 will likely see a slight increase to 182 new hotel openings before dipping back down to 168 in 2020.
Countries with the most projects in the total construction pipeline are led by Brazil with 212 projects/34,559 rooms. Next is Mexico with 180 projects/33,071 rooms, Columbia, with 63 projects/9,623 rooms, Peru which is at an all-time high of 47 projects/6,843 rooms, and Argentina which, conversely, is at an all-time low with 29 projects/2,776 rooms. This is followed by the Dominican Republic with 26 projects/9,452 rooms, Cuba with 26 projects/8,643 rooms, and Chile with 21 projects/3,607 rooms.
Top hotel companies in Latin America’s construction pipeline are AccorHotels with 112 projects/16,223 rooms, Marriott International with 95 projects/15,125 rooms, Hilton Worldwide with 76 projects/11,851, which is an all-time high for the Hilton company in Latin America, and InterContinental Hotels Group with 47 projects/5,933 rooms. These four companies make up 44% of projects in the total construction pipeline and are forecast to see the highest number of new hotel openings in 2019 and 2020.
The top brands are AccorHotel’s Ibis brands with 79 projects/10,501 rooms and Novotel with 12 projects/2,034 rooms, Hilton Worldwide’s Hilton Garden Inn with 20 projects/2,877 rooms and Hampton Inn by Hilton with 17 projects/2,087 rooms, and InterContinental’s Holiday Inn Express with 19 projects/2,32 0 rooms and Holiday Inn with 11 projects/1,537 rooms. These are followed by Marriott International’s full-service Marriott Hotel with 11 projects/2,191 rooms, Courtyard by Marriott with 11 projects/1,644 rooms, and AC Hotel by Marriott with 10 projects/1,701 rooms.
Timothy Ford Appointed President of Lodging Econometrics and New England Hotel Realty August 2, 2018Portsmouth, NH – Patrick Ford, Chairman of Lodging Econometrics (LE), the global leader for hotel real estate intelligence, and New England Hotel Realty (NEHR), the leading full-service hotel real estate advisory brokerage firm in the Northeast, announced today that Timothy Ford has been appointed President of both companies.
“Timothy is a proven leader who most recently served as Executive Vice President, where he was responsible for the company’s technology initiatives, the growth of our client services, overseeing the sales and marketing departments and most notably for taking LE’s trusted U.S. Business Development Programs and expanding them into every region and country worldwide. Incorporating the latest cutting-edge technology, he has also re-designed LE’s online business development program delivery systems, including our global database of hotel development records and portfolio of lodging real estate trend and management guidance reports for client sales teams,” said Ford.
In his new role as President, Timothy will be responsible for creating new business partnerships; continuing to incorporate the latest online technology into our research and deliverables; creating additional business development programs for our roster of franchise clients looking to accelerate their brand growth, hotel ownership and management groups seeking to expand their real estate portfolios, and lodging vendors wanting to increase their sales to the industry.
Ford continued, “it’s a terrific time for the lodging industry and an opportunistic time for our company. Timothy offers the right mix of outstanding vision and proven execution to continue moving our companies forward.”
“I am humbled and honored to be appointed as President, to provide the leadership for our strategic growth, and to continue to serve our clients with unmatched hotel real estate intelligence,” said Timothy Ford. “I look forward to working closely with the board and the LE and NEHR teams to further our vision for the years ahead.”
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