Global Under Construction Room Count Reaches Record High

PORTSMOUTH, NH—According to the latest global hotel construction pipeline trend report from Lodging Econometrics (LE), the global hotel construction pipeline stands at 14,779 projects/2,412,736 rooms. Year-over-year (YOY), the pipeline increased 5% by projects and 4% by rooms, with several stages of the pipeline hitting their peaks by project and rooms counts.

Under Construction is at an all-time-high room count with 1,230,572 rooms/6,896 projects. Projects scheduled to start construction in the next 12 months are also hitting a peak project count to end the second quarter with 4,599 projects/651,133 rooms. There are an additional 3,283 projects/531,031 rooms in the early planning stage of the pipeline.

The top countries by project count are the U.S. with 5,582 projects/687,801 rooms and China reaching a new all-time high with 3,574 projects/647,704 rooms. Sixty-two percent of all global projects in the pipeline are found within these two countries. The U.S. accounts for 38% of projects in the total global construction pipeline, while China accounts for 24%. Distantly following are the U.K. with 350 projects/52,398 rooms, Indonesia with 345 projects/56,373 rooms and Germany with 296 projects/39,645 rooms.

Around the world, the cities with the largest pipeline counts are Los Angeles with 163 projects/27,415 rooms; Dallas with 158 projects/19,314 rooms; and New York with 151 projects/26,302 rooms. Dubai follows with 144 projects/44,895 rooms, then Guangzhou, China, with 140 projects/27,753 rooms and Atlanta with 135 projects/18,634 rooms.

The leading franchise companies in the global construction pipeline by project count are Marriott International with 2,682 projects/452,459 rooms; Hilton with 2,532 projects/378,124 rooms; InterContinental Hotels Group (IHG) with 1,798 projects/263,057 rooms; and Accor with 886 projects/157,362 rooms. These four companies account for 53% of all projects in the global pipeline.

Brands leading in the pipeline for each of these companies are Marriott’s Fairfield Inn with 431 projects/50,249 rooms; Hampton by Hilton with 775 projects/102,815 rooms; IHG’s Holiday Inn Express with 712 projects/90,479 rooms; and Accor’s Ibis Brands with 319 projects/44,817 rooms.

Throughout the first half of 2020, the world opened 891 hotels, accounting for 131,921 rooms.