HENDERSONVILLE, Tennessee—United States hotel development has shifted, because financing has remained difficult to obtain. As of August 2010, the hotel brands with the most rooms in the active hotel development pipeline were the likely players. When comparing the top spots this year versus who held the top spots last year (August 2009), there has been a little movement.
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|
2010 Highest Activity |
2009 Highest Activity |
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|
Chain Scale |
Brand |
% of Pipeline |
Brand |
% of Pipeline |
|
Luxury |
Waldorf=Astoria |
0.4% |
Ritz-Carlton |
0.4% |
|
Upper-upscale |
Embassy Suites |
1.7% |
Marriott |
1.6% |
|
Upscale |
Hilton Garden Inn |
3.6% |
Courtyard |
3.5% |
|
Midscale w/F&B |
Holiday Inn |
4.4% |
Holiday Inn |
4.4% |
|
Midscale w/o F&B |
Holiday Inn Express |
7.3% |
Holiday Inn Express |
6.8% |
|
Economy |
Motel 6 |
0.3% |
Microtel Inn |
0.8% |
|
Extended-stay |
Candlewood Suites |
3.1% |
Candlewood Suites |
3.1% |
SOURCE: STR/TWR/Dodge Construction Pipeline
NOTE: Active development pipeline only includes hotel projects in the planning, final planning and in construction phases of development.
Most interesting to note when comparing the two years’ activity from August 2009 to August 2010:
- Ritz-Carlton moved from the luxury brand with the most rooms in active pipeline to third-highest luxury brand as of August 2010. Waldorf=Astoria moved from second-highest active pipeline in August 2009 to highest the next year.
- In the upper-upscale chain scale, Marriott and Embassy Suites switched first- and second-highest rooms in active pipeline from year to year.
- For upscale brands, Courtyard and Hilton Garden Inn also switched rankings of first- and second-most rooms in the active pipeline.
- Holiday Inn has firmly held its spot as the brand with the most number of rooms in the active pipeline for the midscale-with-food-and-beverage scale. It has more than 10,000 more rooms in the active pipeline than Best Western, the second-highest brand in that chain scale.
- In both years, Holiday Inn Express has exceeded Hampton Inn & Suites, the second-place finisher for the midscale-without-food-and-beverage segment, in pipeline activity by more than 5,000 rooms. Holiday Inn Express has fewer rooms in the active pipeline than it did in August 2009, but its current projects represent 7.3 percent of the total active pipeline (versus 6.8 percent last year).
- This year, Motel 6 edged out Microtel as the brand with the most economy rooms in the active pipeline. Last year, Motel 6 was ranked third, behind Value Place.
- In terms of extended-stay brands, Candlewood Suites has held on to the top spot with consistently more rooms in the active pipeline than Residence Inn, the brand with the second-highest number of rooms.
Although the total number of rooms in the active pipeline has reduced by 24 percent from August 2009 to August 2010, the brands that have historically had the highest amount of new development continue to keep their development engine going.