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.
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.
China’s Hotel Construction Pipeline Remains Strong Despite A Slowing Economy January 2, 2019In the recent report by Lodging Econometrics (LE), in the third quarter of 2018, China’s total construction pipeline stands at 2,642 projects/569,690 rooms and is up 9% by projects and 6% by rooms year-over-year (YOY). Rooms in the construction pipeline are at an all-time high, and the pipeline is a mere 16 projects shy of the cyclical high of 2,658 projects set in the fourth quarter of 2014.
Projects presently under construction are at 1,928 projects/402,529 rooms, projects scheduled to start construction in the next 12 months are at 344 projects/73,209 rooms, and projects in the early planning stage are at 370 projects/93,952 rooms. Because of growing tensions about tariffs and near-term concerns about the economy, there is a notable urgency for developers with hotels already in the pipeline to move towards construction at a faster pace.
Through the third quarter of 2018, China has opened 446 hotels/78,091 rooms. The LE forecast for new hotel openings expects another 195 projects/27,054 rooms to open in the fourth quarter of 2018, bringing the anticipated new hotel openings to 641 projects/105,145 rooms by year-end. In the years ahead, 661 new hotel openings are forecast to open in 2019 and 604 in 2020. Both are distant from the cyclical peak of 1,684 new openings/193,772 rooms recorded in 2014.
Although the growth of China’s GDP has slowed in recent years, domestic tourism is still a driving force of China’s economy, which has been growing since 2013. Hotel demand is robust in tourism destinations and economically developed cities such as Beijing, Shanghai, Chengdu, and Shenzhen. Hotels in the China pipeline average a very high 215 rooms as the projects in upscale, upper midscale, and midscale chain scales are at cyclical peaks.
China’s total construction pipeline continues to be led by Shanghai and Guangzhou with 125 projects/24,403 rooms, and 113 projects/26,897 rooms, respectively. Guangzhou set an all-time high for rooms in the third quarter. Chengdu follows with 98 projects/21,895 rooms, Suzhou with 82 projects/14,640 rooms, and Hangzhou with 78 projects/17,046 rooms.
Franchise companies topping China’s construction pipeline are led by Hilton Worldwide, which has reached a new all-time high for the company, with 397 projects/88,689 rooms under development. Next is InterContinental Hotels Group (IHG) with 305 projects/71,935 rooms, and then Marriott International with 279 projects/77,087 rooms.
Hampton by Hilton is the fastest growing hotel brand in China. This is a result of the 2014 exclusive partnership of Hilton Worldwide with China’s Plateno Hotel Group to develop Hampton by Hilton in China. Since 2015, Hilton and Plateno Hotel Group have opened 47 Hampton by Hilton hotels and have further plans to continue rapid expansion across China with 194 of the 207 Hampton by Hilton projects in the pipeline set to be managed by Plateno.
Hilton’s second largest brand is DoubleTree with 66 projects/19,290 rooms. These two brands comprise 69% of Hilton’s total construction pipeline in China. IHG’s most prominent brands are Holiday Inn Express with 136 projects/25,628 rooms and Holiday Inn with 59 projects/15,961 rooms. Top brands for Marriott International are the full-service Marriott Hotel & Resort with 65 projects/20,064 rooms and Courtyard with 32 projects/8,363 rooms.
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.
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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