Through Q2, 2023, 60 pc of the new hotels that opened in the United States were branded Hilton, Marriott, or IHG
According to the most recent United States Construction Pipeline Trend Report by Lodging Econometrics, in the second quarter of 2023, the franchise companies with the largest pipelines in the United States are Marriott International, Hilton Worldwide and IHG Hotels & Resorts. The report says that Marriott has 1,511 projects with 181,632 rooms, while Hilton has a record high project and room counts of 1,470 projects bringing a total of 164,848 rooms, and IHG has 811 projects to add 80,516 rooms. These three franchise companies comprise 68 pc of all projects in the US hotel construction pipeline.
The report adds that the leading brands for each of these three companies are Home2 Suites by Hilton with record-highs of 565 projects to add 57,970 rooms, IHG’s Holiday Inn with 306 projects with 28,756 rooms and Marriott’s TownePlace Suites with all-time-high project and room counts of 345 projects to add 32,190 rooms.
Other prominent brands in the pipeline for these franchise companies are Marriott’s Residence Inn with a record-high 258 projects with 31,119 rooms, Hampton by Hilton with 292 projects to add 29,796 rooms and IHG’s Avid Hotel which has 132 projects and 11,102 rooms.
In the second quarter of 2023, LE recorded a record-high 1,085 conversion projects, accounting for 106,408 rooms. Of these conversion totals, Hilton leads with 142 conversion projects and 17,468 rooms. Following Hilton, the franchise companies with the largest number of conversion projects are G6 Hospitality, Marriott, Best Western Hotels & Resorts, and IHG. These five franchise companies combined account for 47 pc of the conversion projects across the U.S. at the Q2 close.
Through Q2, 60 pc of the new hotels that opened in the United States were branded Hilton, Marriott, or IHG. Hilton opened 57 new hotels with 6,398 rooms, Marriott opened 56 new hotels with 7,309 rooms, and IHG opened 22 new hotels with 2,304 rooms.
Top brands with the largest number of openings in the first and second quarters of 2023 are Home2 Suites by Hilton with 19 new hotels/1,956 rooms, Hampton by Hilton with 19 new hotels/1,977 rooms, and Marriott’s SpringHill Suites with 9 new hotels/1,158 rooms.
LE anticipates that Hilton will open the largest number of new hotels in 2023 with 145 new hotel projects and 17,793 rooms for a growth rate of 2.3 pc. Next, Marriott is forecast to open 144 hotels and 18,206 rooms for a growth rate of 2.0 pc, followed by IHG with 84 hotels and 9,416 rooms for a growth rate of 2.2 pc.
In 2024, LE forecasts that Marriott will lead new hotel openings with 192 new hotels with 22,898 rooms for a 2.5 pc growth rate. Also, with a growth rate of 2.5 pc in 2024, Hilton is anticipated to open 176 new hotels with 20,004 rooms, and IHG with 111 new hotels and 10,924 rooms.
In 2025, LE analysts predict Marriott will open 256 new hotels and 29,572 rooms for a 3.1 pc growth rate, IHG is projected to open 202 new hotels and 19,390 rooms for a 4.4 pc growth rate, and Hilton is forecast to open 139 new hotels with 14,780 rooms in 2025, for a 1.8 pc growth rate.
