You can always tell how healthy an industry is by the level of activity – and according to lodging consultants and intelligence provider Lodging Econometrics (LE), things look good for 2017. If you’re a designer – interior or architectural – this is a big year for new hotel construction. Let’s look at the numbers.
LE recently came out with their 2017 Global Construction Pipeline Trend Report for the first quarter. Their research shows that hotel construction is up 6% year-over-year globally, with nearly 12,000 projects – which will add two million rooms in the near future. Of those 12,000 projects, over 5,500 are already under construction with another 3754 projects are starting within 12-months – up 17% from the previous year. Our guess is that as Millennials establish themselves financially and their disposable income rises, the largest generation in our history is expected to travel. A lot.
US & China Lead the Way in Hotel Projects
Most of these projects are being built in the United States and China. Together they account for 57% of all new hotel construction (US 30%, China 27%). Top destinations like New York City, Shanghai and Guangzhou (Hong Kong) rank within the top five for new hotel construction. The city with the most rooms being built? Dubai is number one with 35,882 -supported by the fact that the Middle East is experiencing a 15% rise in projects this quarter.
Big Hotel Brands Behind the Boost
Growth doesn’t happen without the big hotel brands making equally big commitments. Leading the pack is Marriott International – they will complete a new hotel every 1.5 days. With over 2100 projects in play, the hotelier is a couple hundred ahead of Hilton Worldwide this quarter. But smaller projects are everywhere. Trends in eco, adventure and food tourism are spawning new hotel experiences globally.
It looks like the hotel industry is getting ready for big changes in demographics and consumer behavior. The onslaught of Millennial travelers compounded by retired Boomers, inexpensive transportation and greater mobility has created a cocktail that keeps prospects on the positive. Overall, it looks like 2017 will present designers everywhere with great opportunities for work and growth. For more detailed information check out LE’s press release.
Photo credits to the hotel (Photo courtesy of…)