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.
China’s Hotel Construction Pipeline Hits New All-Time High Despite Growing Concerns About the Economic Slowdown March 14, 2019Analysts at Lodging Econometrics (LE) report that China’s total construction pipeline is booming and stands at 2,761 projects/580,635 rooms, up 12% by projects and 6% by rooms year-over-year (YOY). At the end of 2018, both projects and rooms in the construction pipeline are at new all-time highs surpassing the previous cyclical high of 2,658 projects set in the fourth quarter of 2014. China has the second largest pipeline in the world.
Projects presently under construction are at 2,044 projects/411,032 rooms, up 17% and 10% YOY, respectively, reflective of the rush to get under construction as the economy continues to soften. Projects scheduled to start construction in the next 12 months are at 351 projects/76,063 rooms, down 4% and 5% YOY. Projects in the early planning stage YOY are flat at 366 projects/93,540 rooms.
At the 2018 year-end, China opened 619 new hotels/109,524 rooms, 23% of all projects worldwide. The LE forecast for new hotel openings, in the years ahead, continues to climb as the record number of projects in the pipeline enter into current supply. Throughout 2019, LE anticipates 671 new hotels/125,396 rooms will open and 691 new hotels having 132,108 rooms will open in 2020.
China’s pipeline is led by Guangzhou with 132 projects/28,694 rooms, a 25% increase in projects YOY. This is an all-time high for the city. Shanghai follows with 123 projects/25,283 rooms. Next is Chengdu also at a record high of 109 projects/23,478 rooms, Hangzhou with 90 projects/17,978 rooms, and Suzhou with 84 projects/15,436 rooms.
Franchise companies topping China’s construction pipeline are led by Hilton Worldwide with 386 projects/86,880 rooms and InterContinental Hotels Group (IHG) with 314 projects/72,758 rooms. Next is Jin Jiang Holdings with 288 projects/33,043 rooms, Marriott International with 283 projects/77,340 rooms, and AccorHotels with 186 projects/33,683 rooms.
Hampton by Hilton is the largest hotel brand in the construction pipeline in China with 194 projects/30,345 rooms. Hilton’s second largest brand is DoubleTree with 67 projects/19,453 rooms. IHG’s major brands are Holiday Inn Express with 150 projects/28,257 rooms and Holiday Inn with 57 projects/15,401 rooms. Top brands for Jin Jiang Holdings are 7 Days Inn with 121 projects/9,541 rooms and Vienna Hotel with 83 projects/11,614 rooms, while Marriott International’s leading brands are the full-service Marriott Hotel & Resort with 64 projects/19,463 rooms and Courtyard with 35 projects/9,025 rooms. AccorHotels has 74 Ibis projects/7,849 rooms and Mercure 50 projects/8,874 rooms.
Global Construction Pipeline Hits Record High at 2018 Year-End March 6, 2019Lodging Econometrics (LE) has released its year-end Global Construction Pipeline Trend Report, which compiles the construction pipeline counts for every country and market around the world. At the close of 2018, LE analysts state that the total global construction pipeline hit record highs with 13,573 projects/2,265,792 rooms, a 7% increase in projects and a 6% increase in rooms year-over-year (YOY).
The global pipeline has been ascending for eight consecutive years after reaching its cyclical low in 2010. All regional pipelines, with the exception of South America, continued their upward trend YOY. It is notable considering economic growth rates started to decline in 2018 and are forecast to slow further in 2019 and 2020. Four of the seven global regions reached all-time highs in 2018: Europe, Africa, Middle East, and Asia Pacific.
There are a record high 6,352 projects/1,172,591 rooms currently under construction worldwide. Projects scheduled to start construction in the next 12 months are at 3,860 projects/572,483 rooms. Projects in the early planning stage stand at 3,361rooms/520,718 projects, also at an all-time high.
The top countries by project count are the United States with 5,530 projects/669,456 rooms, still short of its all-time high of 5,883 projects/785,547 rooms set in the second quarter of 2008, and China with 2,761 projects/580,635 rooms whose pipeline reached a new all-time high. The U.S. accounts for 41% of projects in the total global construction pipeline while China accounts for 20%, resulting in 61% of all global projects being focused in just these two countries. Distantly following are Indonesia with 387 projects/65,405 rooms, Germany with 283 projects/52,569 rooms, and the United Kingdom with 266 projects/38,590 rooms.
Around the world, the cities with the largest pipeline counts are New York City with 171 projects/29,457 rooms, Dubai with 168 projects/49,943 rooms, and Dallas with 163 projects/19,476 rooms. Los Angeles follows with 147 projects/23,404 rooms, and Guangzhou, China with 132 projects/28,694 rooms.
The leading franchise companies in the global construction pipeline by project count are
Marriott International with 2,544 projects/420,405 rooms, Hilton Worldwide with 2,252
projects/333,209 rooms, InterContinental Hotels Group (IHG) with 1,716 projects/249,379
rooms, and AccorHotels with 966 projects/177,052 rooms. These four companies account for 55% of all projects in the global pipeline.
Brands leading in the pipeline for each of these companies are Marriott’s Fairfield Inn with 397
projects/43,089 rooms, Hampton by Hilton with 619 projects/79,591 rooms, IHG’s Holiday
Inn Express with 731 projects/91,691 rooms, and AccorHotel’s Ibis Brands with 321 projects/48,368 rooms.
2018 saw a total of 2,675 new hotels/403,153 rooms open around the world. As a result of the current global pipeline being at an all-time high, LE forecasts that new hotel openings will continue to climb with 2,844 hotels expected to open in 2019. In 2020, new openings are forecast to accelerate further to 3,088 hotels. Over this three-year period, approximately 60% of new hotels opening will occur in the U.S. and China.
European Pipeline Soars Despite Economic Slowdown Throughout the Region February 28, 2019In the 2018 year-end report by Lodging Econometrics (LE), Europe’s total construction pipeline skyrocketed to 1,569 projects/243,947 rooms, a whopping 19% increase year-over-year (YOY), and the highest project and room counts ever recorded. The record counts come despite concerns of slower growth throughout the region, shrinking demand for the region’s exports, Brexit uncertainties, and political tensions in many countries.
There are 784 projects/124,674 rooms currently under construction, 434 projects/68,128 rooms planning to start construction in the next 12 months, and 351 projects/51,145 rooms in the early planning stage. The total pipeline and all three stages of the pipeline have counts more than double their cyclical lows set earlier in the decade.
Announced renovation and conversion counts are also booming with 400 projects/55,787 rooms, up 16% by projects, a record high and up 21% by rooms YOY.
In 2018, 386 new hotels with 53,236 rooms opened throughout Europe, the highest number of new hotel openings ever recorded. Because of the robust construction pipeline, the LE forecast for new hotel openings will continue to be strong with 382 new hotels/53,252 rooms anticipated in 2019 and 386 new hotels/59,861 rooms in 2020.
Franchise companies with the largest construction pipelines are AccorHotels with 257 projects/34,606 rooms and Marriott International with 215 projects/35,789 rooms. Next is Hilton Worldwide with 173 projects/26,684 rooms, and InterContinental Hotels Group (IHG) with 147 projects/24,861 rooms. These four companies are responsible for 50% of the projects and rooms in the total pipeline. AccorHotels, Marriott International, and IHG set new record project counts in their European pipelines.
The leading brands for each of these top companies are AccorHotel’s Ibis brands with 138 projects/17,369 rooms, Novotel with 26 projects/4,426 rooms, Adagio City Aparthotel with 25 projects/3,236 rooms, and Mercure Hotel with 25 projects/2,656 rooms. Marriott International’s top brands are Moxy 69 projects/12,479 rooms, Courtyard by Marriott 33 projects/5,788 rooms, and the Autograph Collection 17 projects/2,324 rooms. Hilton Worldwide has Hampton Inn with 67 projects/ 10,309 rooms, Hilton Garden Inn 47 projects/6,960 rooms, and DoubleTree by Hilton 25 projects/3,371 rooms. IHG’s include Holiday Inn Express with 74 projects/11,176 rooms, Holiday Inn 34 projects/7,887 rooms, and Hotel Indigo 14 projects/1,780 rooms.
Many brands have hit all-time records at year-end including Novotel, Adagio City Aparthotel, Moxy, Courtyard, the Autograph Collection, DoubleTree, and Holiday Inn Express.
Europe’s leading countries in the construction pipeline are Germany with 283 projects/52,569 rooms, the United Kingdom with 266 projects/38,590 rooms, France with 167 projects/20,479 rooms, Poland with 97 projects/14,958 rooms, and Portugal with 96 projects/10,206 rooms. With the exception of the United Kingdom, these markets all have construction pipelines at record highs.
The cities with the largest pipelines are London with 80 projects/13,516 rooms, Paris with 54 projects/8,093 rooms, Dusseldorf with 50 projects/10,032 rooms, Istanbul with 31 projects/5,566 rooms, and Lisbon with 30 projects/2,911 rooms. Frankfurt follows with 29 projects/5,694 rooms, Warsaw with 29 projects/5,390 rooms, and Moscow with 28 projects/5,881 rooms. Warsaw, Dusseldorf, and Budapest have pipelines greater than 20% of their current census indicating the possibility of absorption problems should economic growth trends soften further.
Lodging Econometrics Develops Premium Data Integration Services for Salesforce and Other Client Relationship Management Platforms February 21, 2019Lodging Econometrics (LE), the global leader for hotel real estate intelligence, announces that it has developed and added a premium data integration service to its business development database offerings. LEConnect for Salesforce and other Client Relationship Management (CRM) platforms allows for LE’s database of decision-makers for new hotel construction projects, renovations, conversions, and open & operating hotels to be seamlessly integrated into any CRM.
“Our clients were very pleased with the upgrades we made to our business development program database and strategy & forecasting center late last year, but recently expressed a need to receive our database content directly into their existing CRM platforms. This is precisely why we built LEConnect and developed this integration service. We’ve designed it so that our clients no longer need two platforms. Now LE can merge any of its global database programs for business development simply and seamlessly into a client’s existing Salesforce or other CRM platform, allowing clients to work entirely within their own platform,” said Timothy Ford, President of Lodging Econometrics.
By subscribing to and installing LEConnect, LE’s clients will be able to identify new accounts with the greatest potential, make more informed and better targeted decisions, increase their sales, and save considerable sales time and staff resources. As with all of LE’s programs, LE also provides staff training and continual support to ensure the successful implementation of their database services throughout the client’s organization.
“For any sales organization in the lodging industry, franchise company, hotel ownership or management group or vendor, LEConnect can immediately improve their productivity and increase their sales. And, for those without an existing CRM platform, LE’s database has the functionality to serve as an organization’s stand-alone CRM platform. We are excited at the opportunity to deliver these new database services to our existing and future clients. Our cutting-edge service removes the frustration and logistics from the data integration process,” said Ford.
To learn how you can get connected with LE’s Business Development Programs, contact us at +1 603.431.8740 or firstname.lastname@example.org.
Congratulations to 2018 ALIS Development of the Year Award Winners! February 14, 2019On Wednesday, January 30, 2019, JP Ford, SVP and Director of Global Business Development of Lodging Econometrics, presented the winners of the 2019 Full-Service and Select/Limited Service Developments of the Year with their prestigious award at the America’s Lodging Investment Summit.
The winner in the Full-Service category was the: Gaylord Rockies Resort & Convention Center. Representing the property was: Ira Mitzner, President and CEO, RIDA Development Corporation; and Noah Silverman, Chief Development Officer, North America Full-Service Hotels, Marriott International.
The winner in the Select/Limited Service category was the: Hilton Garden Inn Chicago McCormick Place, Hampton Inn by Hilton Chicago McCormick Place and Home2 Suites by Hilton Chicago McCormick Place. Representing the property was: David Duncan, President, First Hospitality Group, Inc.
Supply Growth in Top 25 U.S. Markets to Accelerate February 11, 2019Analysts at Lodging Econometrics (LE) report that in 2018, new supply growth was 2.0%, the first time it has reached 2.0% in eight years. The top 25 markets had new supply growth of 2.7% while the remainder of the country showed growth at 1.7%.
Demand growth was 2.5% for both the top 25 markets and for the remainder of the country as well.
Last year, 12 of the top 25 markets had supply growth in excess of demand growth. With the exception of Houston, Seattle, and Orlando the variances were modest. As the economy settles into the “new normal” of slower growth and low inflation, LE expects the number of markets with supply growth exceeding demand growth to increase and the variances to widen.
In the fourth quarter of 2018, the top five markets with the largest hotel construction pipelines are: New York City with 171 projects/29,457 rooms, followed by Dallas and Los Angeles, both hitting construction pipeline all-time highs with 163 projects/19,476 rooms and 147 projects/23,404 rooms respectively. Next is Houston with 141 projects/15,499 rooms, Atlanta with 115 projects/15,522 rooms, and Nashville with 114 projects/15,510 rooms.
The important metric to monitor is markets with large current pipelines compared to their existing census. At the end of 2018, there were 10 markets with total pipelines in excess of 15% of their current census. Nashville tops this list of markets at 34.4%, followed by New York City, Miami, Los Angeles, Dallas, Detroit, Seattle, Denver, Boston, and then Houston at 17.9%. These are the markets likely to see the fastest supply growth and the largest supply-demand variances over the next few years.
The markets topping the forecast for new hotel openings in 2019 will be New York City with 65 new hotels/9,396 rooms, Dallas with 31 projects/3,673 rooms, Houston with 30 projects/3,478 rooms, Nashville with 22 projects/2,785 rooms, and Los Angeles with 14 projects/2,124 rooms.
Marriott, Hilton and IHG Development Projects Lead the U.S. Hotel Construction Pipeline February 1, 2019In the Lodging Econometrics (LE) year-end report for 2018, analysts detailed the leading franchise companies and their brands in the construction pipeline. Marriott International tops the list with 1,498 projects/197,227 rooms, Hilton Worldwide with 1,359 projects/152,060 rooms, and InterContinental Hotels Group (IHG) with 972 projects/98,377 rooms. Sixty-nine percent of the projects in the pipeline derive from these three franchise companies.
Marriott and Hilton both have pipelines that are up 6% by project count year-over-year (YOY). The two companies set new all-time pipeline records at year-end, both by project and room counts. IHG has their highest company counts since the second quarter of 2008.
For each of these three companies, the leading brands by project count in the construction pipeline continue to be IHG’s Holiday Inn Express with 423 projects/39,644 rooms, Hilton’s Home2 Suites by Hilton with 403 projects/42,142 rooms, and Marriott’s Fairfield Inn with 306 projects/29,845 rooms. These three brands dominate the pipeline and combined claim 20% of the projects. These three brands also had the highest number of new openings in 2018. IHG’s Holiday Inn Express opened 92 new hotels, Hilton’s Home2 Suites opened 79, and Marriott’s Fairfield Inn opened 68.
Other notable brands in the pipeline for each of these franchises are: Hampton by Hilton with 303 projects/31,380 rooms and Hilton’s Tru by Hilton with 302 projects/29,300 rooms; Marriott’s Residence Inn with 220 projects/27,132 rooms and TownePlace Suites with 210 projects/21,870 rooms; and IHG’s Avid Hotel with 160 projects/14,648 rooms and Staybridge Suites with 155 projects/16,181 rooms.
In 2018, 947 new hotels/112,050 rooms opened, a slight decline from 2017’s 985 new hotels/117,865 rooms. Of the 947 new hotels that opened, 30% are Marriott branded, 27% are Hilton branded, and 15% are IHG branded.
The LE forecast for new hotel openings in 2019 anticipates that Marriott will open 287 projects/36,301 rooms. Next is Hilton with 274 projects/30,433 rooms followed by InterContinental Hotels Group with 152 projects/15,722 rooms forecast to open by year-end.
The Year-End U.S. Hotel Construction Pipeline Continues Steady Growth Trend January 30, 2019At the end of 2018, analysts at Lodging Econometrics (LE) reported that the total U.S. construction pipeline continued to trend upward with 5,530 projects/669,456 rooms, both up a strong 7% year-over-year (YOY). However, pipeline totals continue to trail the all-time high of 5,883 projects/785,547 rooms reached in the second quarter of 2008.
Project counts in the early planning stage continue to rise reaching an all-time high of 1,723 projects/199,326 rooms, up 14% by projects and 12% by rooms YOY. Projects scheduled to start construction in the next 12 months stand at 2,153 projects/255,083 rooms. Projects currently under construction are at 1,654 projects/215,047 rooms, the highest counts since early 2008.
Also noteworthy at year-end, the upscale, upper-midscale, and midscale categories are at record-highs, for both rooms and projects. Luxury room counts and upper-upscale project counts are also at record levels.
In 2018, the U.S. had 947 new hotels/112,050 rooms open, a 2% growth in new supply, bringing the total U.S. census to 56,909 hotels/5,381,090 rooms. The LE forecast for new hotel openings in 2019 anticipates a 2.2% supply growth rate with 1,022 new hotels/116,357 rooms expected to open. The pace for new hotel openings has slowed slightly because of construction delays largely caused by shortages in skilled labor.
Lending at attractive rates is still accessible to developers, but lenders are growing more selective as we move deeper into the existing cycle.
The pipeline has completed its seventh consecutive year of growth. Moving forward the growth rate is expected to slow as the economies of most countries, including the United States, more firmly settle into the “new normal” marked by slow growth and low inflation.
While there are no visible signs of a recession on the horizon, the risks to the economy are not insignificant and include tariff conflicts, swings in the stock market, unforeseen geopolitical problems, any of which could send the economy lower.
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.
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.”
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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