Lodging Econometrics: New Brands Announced Since 2015—Forecast for New Hotel Openings

As the hotel construction pipeline in the United States continues to grow, so does the number of new brands being announced by the major franchise companies. Since 2015, there have been more than 70 brands announced. These brands span across all chain scales—luxury through economy. Many of these brands began in the U.S. while others are new brands coming here for the first time.

Brands Started in the U.S.

According to Lodging Econometrics’ (LE) recent construction pipeline trend report for the U.S., the new brands that started here account for 386 projects/40,054 rooms in the pipeline. These numbers include both new construction projects as well as brand conversions. These new brands are forecast to open more than 12,000 rooms through the last quarter of 2017 and 2018 combined and another 7,169 in 2019. Currently, these brands have 61 hotels/10,421 rooms open and operating in the U.S.

The bulk of these rooms are coming from brands found in the upper-midscale and midscale chain scales, which accounts for 69% of the expected new brand rooms to open through 2018 and 83% of the rooms in 2019. This trend is being led by Marriott International’s upper-midscale Moxy brand, which is forecast to open more than 2,300 rooms in the next nine quarters as well as Hilton’s midscale brand, Tru by Hilton, which is expected to open more than 7,600 rooms through 2019.

Brands Entering the U.S.

As for the new brands that are just entering the U.S. by a major franchise company, these brands are just beginning to make their presence known. There are currently 18 hotels/3,258 rooms open and operating in the U.S. However, as these companies ramp up their construction and conversion pipelines, we can expect to see the number of hotels/rooms in the pipeline and forecasted to open increase over the next few years.

As it stands at the end of Q3 2017, these brands have 26 projects/5,025 rooms in the construction pipeline. LE is forecasting 3,113 of those rooms to open through 2018 and another 957 in 2019. The brand with the largest number of projects in the pipeline as well as the most rooms forecasted to open is Marriott International’s upper upscale brand, Delta Hotels, with nearly 2,500 rooms slated to open through 2019. Other brands to watch for include: dusitD2 by Dusit Hotels & Resorts, GreenTree Inn by GreenTree Hospitality, Ibis by AccorHotels, Pullman Hotel by AccorHotels, and Wanda Vista by Wanda Group.

For more information on any major franchise company and their brands, their construction pipelines or for the forecast for new hotel openings, please contact Lodging Econometrics: (603) 427-9542 or [email protected].

JP Ford, SVP, director of business development, Lodging Econometrics

Bruce Ford, SVP, director of business development, Lodging Econometrics

Tom O’Gorman, VP of sales, Lodging Econometrics