US & China Lead Q2 Global Hotel Construction Pipeline
Dallas, Atlanta and Phoenix are the largest pipeline markets in the U.S.; fewer but larger projects in China—especially in Chengdu and Shanghai—are underway.
Fransebas
Together, the United States and China account for 63 percent of the second-quarter global construction pipeline, with U.S. markets Dallas and Atlanta representing the largest number of projects, according to a new report from Lodging Econometrics.
In Q2, the U.S. leads the global construction pipeline with 38 percent of the total project count at 5,572 projects and 660,061 rooms, according to the report. China follows at 25 percent of the global construction pipeline with 3,666 projects and 678,965 rooms—about 2.8 percent higher than the U.S. room count in the second quarter. Trailing further behind is India with 480 projects and 57,161 rooms, according to the report.
More specifically, U.S. cities with the highest total pipeline in the second quarter include Dallas with 184 projects and 21,501 rooms, Atlanta with 141 projects and 17,993 rooms and Phoenix with 119 projects and 16,107 rooms.
China’s pipeline includes larger hotels. Its strongest markets are Chengdu with 140 projects/27,890 rooms and Shanghai with 117 projects/22,887 rooms.
Of the 11 markets with more than 100 projects in their total pipelines, seven are located in the U.S., three are in China, and one is in Saudi Arabia.
Alongside its strong pipeline, however, Phoenix represented one of the lowest occupancy markets among research firm STR’s Top 25 markets in the U.S. in July at 58.9 percent. Among those markets, Phoenix has been one of the lowest performing cities for occupancy since June. How performance will fare with an influx of additional volume remains to be seen.
According to Lodging Econometrics' report, three hotel companies lead the global construction pipeline with "record-high project counts" in Q2, including Hilton Worldwide, Marriott International and InterContinental Hotels Group—all totaling 50 percent of the global construction pipeline.
In terms of projects in Q2, Hilton leads with 2,808 projects and 398,742 rooms, according to the report, with Marriott close behind at 2,679 projects and 429,925 rooms. IHG follows with 1,764 projects and 259,668 rooms in the global construction pipeline, according to the report.
Within the global market, Lodging Econometrics reported luxury, upper upscale and the upper midscale chains—segments that appeal to business travel—"dominate" the second quarter, accounting for 47 percent of projects in the global construction pipeline.
