The leading brands for each of these three companies are Home2 Suites by Hilton with record-highs of 565 projects/57,970 rooms, IHG’s Holiday Inn Express with 306 projects/28,756 rooms and Marriott’s TownePlace Suites with all-time-high project and room counts of 345 projects/32,190 rooms.
Other prominent brands in the pipeline for these franchise companies are Marriott’s Residence Inn with a record-high 258 projects with 31,119 rooms; Hampton by Hilton with 292 projects/29,796 rooms; and IHG’s Avid Hotel with 132 projects/11,102 rooms.
In the second quarter of 2023, LE recorded a record-high 1,085 conversion projects, accounting for 106,408 rooms. Of these conversion totals, Hilton leads with 142 conversion projects/17,468 rooms. Following Hilton, the franchise companies with the largest number of conversion projects are G6 Hospitality, Marriott, Best Western Hotels & Resorts and IHG. These five franchise companies combined account for 47% of the conversion projects across the U.S. at the Q2 close.
Through Q2, 60% of the new hotels that opened in the U.S. were branded Hilton, Marriott or IHG. Hilton opened 57 new hotels/6,398 rooms, Marriott opened 56 new hotels/7,309 rooms and IHG opened 22 new hotels/2,304 rooms.
Top brands with the largest number of openings in the first and second quarters of 2023 are Home2 Suites by Hilton with 19 new hotels/1,956 rooms, Hampton by Hilton with 19 new hotels/1,977 rooms and Marriott’s SpringHill Suites with 9 new hotels/1,158 rooms.
LE anticipates that Hilton will open the largest number of new hotels in 2023 with 145 new hotel projects and 17,793 rooms for a growth rate of 2.3%. Next, Marriott is forecast to open 144 hotels/18,206 rooms for a growth rate of 2.0%, followed by IHG with 84 hotels/9,416 rooms for a growth rate of 2.2%.
In 2024, LE forecasts that Marriott will lead new hotel openings with 192 new hotels/22,898 rooms for a 2.5% growth rate. Also, with a growth rate of 2.5% in 2024, Hilton is anticipated to open 176 new hotels/with 20,004 rooms, and IHG with 111 new hotels/10,924 rooms.
In 2025, LE analysts predict Marriott will open 256 new hotels/29,572 rooms for a 3.1% growth rate, IHG is projected to open 202 new hotels/19,390 rooms for a 4.4% growth rate, and Hilton is forecast to open 139 new hotels/14,780 rooms in 2025, for a 1.8% growth rate.
Tags: Avid Hotel, Best Western Hotels & Resorts, G6 Hospitality, Hampton by Hilton, Hilton, Holiday Inn Express, Home2 Suites by Hilton, IHG Hotels & Resorts, Lodging Econometrics (LE), Marriott International, Residence Inn, TownePlace Suites
