Lodging Econometrics (LE) has released its bi-annual Global Construction Pipeline Trend Report, which compiles the construction pipeline counts for every country and market around the world. In the Q2 2022 report, LE analysts state that the total global construction pipeline stands at 14,117 projects/2,293,131 rooms, up 5% by projects and 2% by rooms year-over-year (YOY).
There are 6,074 projects/1,110,174 rooms currently under construction at the Q2 close. Projects scheduled to start construction in the next 12 months, at 3,664 projects/525,096 rooms, are up 1% by projects YOY and unchanged by rooms, while projects in early planning reached record-high project and room counts of 4,379 projects/657,861 rooms, up 22% by projects and 13% by rooms YOY. Conversions in the global hotel construction pipeline reached new highs in Q2, with 1,672 projects/206,355 rooms.
At the end of the second quarter, the top countries by project count are the United States with 5,220 projects/621,268 rooms and China with a current pipeline of 3,693 projects/701,974 rooms. The U.S. accounts for 37% of projects in the total global construction pipeline while China has 26%, resulting in 63% of all global projects being concentrated in these two countries. Distantly following are India with 339 projects/42,548 rooms, the United Kingdom with 309 projects/46,296 rooms, and Indonesia with 284 projects/45,359 rooms.
Across the globe, the markets with the largest pipelines by project counts are Dallas, TX with 173 projects/20,707 rooms, Chengdu, China with 141 projects/28,573 rooms, and Atlanta, GA with 140 projects/18,131 rooms. Shanghai, China, follows with 128 projects/25,200 rooms, and then Los Angeles, CA with 124 projects/20,365 rooms.
The leading franchise company in the global construction pipeline is Hilton Worldwide, with 2,596 projects/379,818 rooms. Marriott International follows closely with 2,533 projects/421,613 rooms. Next is InterContinental Hotels Group (IHG) with 1,687 projects/247,310 rooms, and Accor with 894 projects/155,577 rooms. These four franchise companies account for 55% of all projects in the pipeline. Brands leading the pipeline for each of these companies are Hampton by Hilton with 768 projects/100,732 rooms; Fairfield Inn with 343 projects/42,113 rooms; Holiday Inn Express with 610 projects/76,991 rooms; and Ibis by Accor with 250 projects/32,362 rooms.
The first half of 2022 saw a total of 803 new hotels/121,029 rooms open around the world with an additional 1,653 hotels/244,956 rooms scheduled to open by year-end. In 2023, 2,658 new hotel openings/416,640 rooms are expected to open. For 2024, LE is forecasting 2,786 new hotels, accounting for 435,870 rooms, to open around the world.