Q4 U.S. Hotel Pipeline Grows, Marriott Leads Development

February 6, 2023

The total number of projects in the U.S. hotel development pipeline at the end of the fourth quarter was up 14 percent year over year to 5,465, according to a report from Lodging Econometrics. Marriott International again topped the list with the greatest number of projects and rooms in Q4, while Dallas has record-high project counts among U.S. markets, according to the report. 

Q4 pipeline growth increased 4 percentage points over Q3’s 10 percent year-over-year growth. Guest rooms in the pipeline as of Q4 were up 12 percent year over year to nearly 651,000.

According to Lodging Econometrics, all stages of U.S. hotel construction saw “positive” growth in Q4 with 1,008 projects and nearly 135,500 rooms under construction—up 4 percent and 3 percent year over year, respectively. 

Additionally, construction scheduled to begin in the next 12 months is up 14 percent year over year with 2,073 projects in the pipeline. Planned guest rooms are up 12 percent year over year, with more than 235,200 in the pipeline. Development in “early planning” stages is up 18 percent year over year with 2,348 projects and 17 percent year over year with nearly 280,000 guest rooms in Q4—both record highs—according to the report. 

According to Lodging Econometrics: “The 2023 outlook for the lodging industry looks strong, as it continues to recover from the lows experienced throughout the past two years. Although the U.S. and the hotel industry continue to face some economic challenges, travel and hotel bookings increased substantially during 2022 and the new construction pipeline in the U.S. continues to grow at a moderate pace with new project announcements and construction-starts increasing 35 percent [year over year] and 36 percent [year over year], respectively. Hotel owners, investors, developers, and management groups see much opportunity in the year ahead.”

Marriott and Dallas Lead, Again 

Marriott again had the largest U.S. pipeline, with 1,490 projects and more than 180,100 rooms in Q4. Hilton Worldwide followed with 1,378 projects and nearly 154,800 rooms, while InterContinental Hotels Group had 789 projects and nearly 79,000 rooms in Q4.

According to the report, brands with the largest project and room count are Home2 Suites by Hilton with 521 projects and about 53,700 rooms, Marriott’s TownePlace Suites with 320 projects and about 29,800 rooms and IHG’s Holiday Inn Express with 293 projects and about 27,800 rooms in Q4.

As for U.S. markets, Dallas again topped the charts with a record-high 176 projects and nearly 20,800 rooms in Q4, according to the report. Following close behind is Atlanta with 145 projects and 18,100 rooms, Los Angeles with 122 projects and more than 19,400 rooms, Phoenix with 116 projects and about 16,200 rooms and Nashville with 106 projects and about 14,200 rooms, according to Lodging Econometrics. 

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