New hotel projects in the pipeline as of the third quarter of this year, represent a 10% gain over where things stood last year at this same point.
So says a new industry survey released by the Portsmouth, New Hampshire-based Lodging Econometrics, which also shows an increase of 6% in the number of new hotel rooms being planned over the third quarter of 2021.
At the end of September, a total of 987 projects, representing just over 135,000 rooms, are already under construction. Plans for the next year, meanwhile, stand at a significantly higher 2,074 projection, for an aggregate total of just under 236,900 rooms.
Such numbers represent what can only be described as a vibrant hotel construction market, particularly after the industry saw many projects cancelled or delayed during the Covid-19 pandemic.
According to a Lodging Econometrics press release, “lending rates have changed significantly in 2022 due to the Federal Reserve’s rate increases.” As a result, “ownership and management groups are finding that reinvesting in their current portfolios, whether that be renovating or repositioning to another brand, is a better return on investment right now.”
Given such trends, it is perhaps not surprising that nearly 900 brand conversion room projects were undertaken in the last quarter, representing 99,474 rooms.
At the same time the renovation pipeline, showing growth numbers not seen since the summer of 2018, has remained strong with 893 individual projects and 140,440 rooms.
In the upper midscale chain segment, Home2Suites by Hilton had 494 projects in the talking stage this most recent quarter; followed by InterContinental Hotel Group’s Holiday Inn Express, at 297 projects; and Marriott’s TownePlace Suites at just under 300 projects.
Among the upscale chains, Marriott’s Residence Inn led the way with 234 projects; followed by its Springhill Suites brand with 148 projects; and IHG’s Staybridge Suites at 125 projects.
By Garry Boulard
