Marriott, Hilton and IHG still rule pipeline in Q3

Projects for the three make up 68 percent of the total

Marriott International, Hilton Worldwide and InterContinental Hotels Group once again topped the U.S. hotel construction pipeline for the third quarter.

THE TOP THREE companies for the U.S. hotel construction pipeline remain the same during the third quarter as in the last few years: Marriott International, Hilton Worldwide and InterContinental Hotels Group, according to Lodging Econometrics. Projects for those three companies make up 68 percent of the pipeline, about the same percentage they have held throughout 2020.

Marriott had 1,390 projects with 184,450 rooms, followed by Hilton with 1,351 projects and 155,626 rooms and IHG with 873 projects and 89,375 rooms, according to LE’s report.

Through the third quarter of 2020, 599 new hotels with 68,712 rooms opened across the U.S. Marriott, Hilton, and IHG branded hotels collectively accounted for 72 percent of openings throughout the third quarter, with Marriott leading with 173 openings, followed by Hilton with 170 and IHG with 86. The top three hotel companies are expected to open 202 hotels by the end of the year and 655 in 2021, adding 77,101 rooms to the number of hotels in the U.S.

Hilton’s Home2 Suites and IHG’s Holiday Inn Express continue to have the largest U.S. pipelines with 402 projects with 42,036 rooms and 348 projects with 33,351 rooms, respectively. Hampton by Hilton follows with 291 projects with 30,140 rooms, then Tru by Hilton with 280 project with 26,991 rooms, and Marriott’s Fairfield Inn with 277 projects/27,005 rooms.

LE’s other notable brands in the pipeline for each of these franchise companies are Marriott’s Residence Inn with 198 projects and 24,549 rooms, SpringHill Suites with 172 projects and 19,594 rooms, and TownePlace Suites with 195 projects with 19,616 rooms, and IHG’s Avid Hotel with 185 projects with 16,583 rooms.

The number of hotels under construction in the U.S., 282 projects with 655,026 rooms, is down 7 percent by projects and 6 percent by rooms in the third quarter, year-over-year, according to a previous report from LE.