Lodging Econometrics (LE) has released its bi-annual Global Construction Pipeline Trend Report, which compiles the construction pipeline counts for every country and market worldwide. In the Q2 2022 report, LE analysts state that the total global construction pipeline stands at 14,117 projects/2,293,131 rooms, up five per cent by projects and two per cent 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 one per cent by projects YOY and unchanged by rooms. Projects in early planning reached record-high project and room counts of 4,379 projects/657,861 rooms, up 22 per cent by projects and 13 per cent 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 per cent of projects in the global construction pipeline. In comparison, China has 26 per cent, resulting in 63 per cent of all international 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 per cent 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 803 new hotels/121,029 rooms open worldwide, 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. And for 2024, Lodging Econometrics forecasts 2,786 new hotels, accounting for 435,870 rooms, to open worldwide.