THREE MAJOR COMPANIES sat atop the U.S. hotel construction pipeline in 2018, according to Lodging Econometrics. They are Marriott International, Hilton Worldwide and InterContinental Hotels Group.
Lodging Econometrics year-end report for last year had Marriott in first place with 1,498 projects with 197,227 rooms, Hilton second with 1,359 projects with 152,060 rooms, and IHG third with 972 projects with 98,377 rooms. The three companies’ projects made up 69 percent of the total pipeline, keeping them in the top positions they’ve held since at least November.
The Marriott and Hilton pipelines have increased 6 percent year-over-year, setting all-time pipeline records by year’s end in terms of projects and room count. IHG has seen its highest numbers since 2008’s second quarter.
IHG’s Holiday Inn Express led the brands by project count with 423 projects and 39,644 rooms. Hilton’s Home2 Suites was next with 403 projects and 42,142 rooms, while Fairfield Inn by Marriott took the third position with 306 projects and 29,845 rooms. Those three brands made up 20 percent of the overall pipeline and had the highest number of new openings in 2018. Holiday Inn Express opened 92 new hotels, Home2 Suites opened 79 and Fairfield Inn opened 68.
At the same time, the number of openings overall declined some in 2018 to 947 new hotels with 112,050 rooms compared to 2017’s 985 new hotels with 117,865 rooms. Of those 947 new hotels, 30 percent were by Marriott, 27 percent were by Hilton and 15 percent were by IHG.
Lodging Econometrics forecasts that Marriott will open 287 projects with 36,301 rooms this year, followed by Hilton with 274 projects and 30,433 rooms. IHG is expected to open 152 projects with 15,722 rooms by year-end.
Other high-ranking brands are:
- Hampton by Hilton with 303 projects with 31,380 rooms.
- Tru by Hilton with 302 projects with 29,300 rooms.
- Marriott’s Residence Inn with 220 projects with 27,132 rooms.
- TownePlace Suites with 210 projects with 21,870 rooms.
- IHG’s avid Hotel with 160 projects with 14,648 rooms.
- Staybridge Suites with 155 projects with 16,181 rooms.