Ed Brock is an award-winning journalist who has worked for various U.S. newspapers and magazines, including with American City & County magazine, a national publication based in Atlanta focused on city and county government issues. He is currently senior editor at Asian Hospitality magazine, the top U.S. publication for Asian American hoteliers. Originally from Mobile, Alabama, Ed began his career in journalism in the early 1990s as a reporter for a chain of weekly newspapers in Baldwin County, Alabama. After a stint teaching English in Japan, Ed returned to the U.S. and moved to the Atlanta area where he returned to journalism, coming to work at Asian Hospitality in 2016.
AS THEY HAVE for the past few years, three companies dominate the U.S. hotel construction pipeline, according to Lodging Econometrics. Marriott International, Hilton Worldwide and InterContinental Hotels Group combined accounted for 68 percent of the projects in the total pipeline for the second quarter, roughly the same percentage as the first quarter.
Marriott had 1,487 projects with 195,952 rooms during the quarter, followed by Hilton with 1,395 projects and 160,078 rooms, and IHG with 920 projects and 94,499 rooms.
On a brand by brand basis, Hilton’s Home2 Suites and IHG’s Holiday Inn Express topped the list with 415 projects and 43,336 rooms and 371 projects and 35,539 rooms, respectively. Hampton by Hilton was close behind with 304 projects and 31,365 rooms, then Marriott’s Fairfield Inn with 302 projects and 29,251 rooms. These four brands combined represent 25 percent of the projects in the total pipeline.
LE recorded 580 conversion projects with 66,852 rooms in second quarter results. Of those, Best Western dominates with 150 conversion projects and 13,482 rooms, alone claiming 25 percent of the conversion pipeline by projects. Marriott was next with 79 projects and 13,721 rooms, Hilton had 69 projects and 11,279 rooms and IHG recorded 50 projects with 5,382 rooms. Best Western and these three franchise companies combined account for 66 percent of all the rooms in the conversion pipeline across the United States.
In the first half of 2020, 313 new hotels with 36,992 rooms opened across the United States. Of those openings, Marriott, Hilton and IHG collectively opened 69 percent of the hotels. Marriott opened 90 hotels with 11,036 rooms, Hilton opened 82 hotels with 8,728 rooms and IHG opened 44 hotels with 4,190 rooms.
Marriott, Hilton and IHG have topped the construction pipeline for years.
Sonesta launched Americas Best Value Studios, an extended-stay version of ABVI.
The model targets owners seeking limited front desk and housekeeping.
The brand meets demand for longer-term, value-focused stays.
SONESTA INTERNATIONAL HOTELS Corp. launched Americas Best Value Studios by Sonesta, an extended-stay version of its franchised brand, Americas Best Value Inn. The model targets owners seeking limited front desk and housekeeping, optional fitness center and lobby market along with standard brand requirements.
The brand aims to address the growing demand for longer-term, value-driven accommodations, Sonesta said in a statement.
"Americas Best Value Studios by Sonesta represents a strategic evolution of our trusted Americas Best Value Inn brand," Keith Pierce, Sonesta’s executive vice president and president of franchise development, said. "We are expanding our offerings to directly address the increasing demand within the extended-stay segment, providing a practical solution for travelers seeking longer-term lodging at value. This new brand type allows our local franchised owner-operators to tap into a growing market while maintaining the community-focused experience that Americas Best Value Inn is known for."
ABVI has a majority presence in secondary and tertiary markets, the statement said.
The extended-stay brand’s operational model features a front desk, bi-weekly housekeeping, on-site laundry and pet-friendly accommodations, Sonesta said. Guests can also earn or redeem points through the Sonesta Travel Pass loyalty program.
In August, Sonesta named Stayntouch its preferred property management system after a two-year review of its ability to support the company’s franchise model. The company operates more than 1,100 properties with more than 100,000 rooms across 13 brands on three continents.
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