May 2018 Digital Issue

EDITOR’S PAGE
PIPELINE OF OPPORTUNITIES
Sometimes a series of factors converge
to create a favourable outcome — a
reality hoteliers are discovering as
they continue to experience halcyon days.
Speak to pundits and they’ll quickly tell you
the past year has been strong on all fronts
and, according to most, 2018 will be just
as strong with the momentum expected to
continue for the foreseeable future.
When you factor in the potential of
increased traffic from Chinese tourists,
Canada’s continued prominence on the
global stage and the strength of the global
market — barring any unforeseen circumstances — the future looks bright.
Certainly, hotels are basking in the glory, even in a world in which
disruption has become a daily occurrence. As Brian Flood, vice-president,
Cushman & Wakefield stated at the recent Hotelier/Marriott Hotels’ Investment
Roundtable, “We’re coming off record-breaking years. So, while
Airbnb has had an impact, it hasn’t had a huge negative impact on the
hotel space.”
In terms of new construction, growth is solid. According
to the Lodging Econometrics Global Construction Pipeline Trend Report, the
total global pipeline stands at 12,631 projects comprising 2,127,794 rooms —
representing year-over-year project growth of seven per cent.
There are currently 5,847 projects representing 1,101,707 rooms under
construction, up six per cent YOY. In terms of projects scheduled to start
construction in the next 12 months, there are 3,744, with a total of 548,876
rooms (up two per cent) while projects in early planning stages stand at
3,040 for a total of 477,211 rooms — up 17 per cent YOY.
So who leads the charge in terms of global hotels in the construction
pipeline? The leading franchise companies by project count are Marriott
International, with 2,405 projects/400,822 rooms; Hilton Worldwide, with
2,108 projects/315,603 rooms; InterContinental Hotels Group (IHG), with
1,491 projects/224,239 rooms; and AccorHotels, with 809 projects/151,416
rooms. The leading brands for each of these companies are Marriott’s
Fairfield Inn (364 projects/38,986 rooms); Hilton’s Hampton Inn & Suites,
(570 projects/71,795 rooms); IHG’s Holiday Inn Express (710 projects/87,150
rooms); and Accor’s Ibis (156 projects/23,863 rooms).
In Canada, growth opportunities still abound. As Ryan McRae, area
vice-president of Marriott Hotels said at the recent roundtable, “Within our
portfolio, there’s a lot of white space on the map still left in Canada for our
brands, so we look at that as a huge opportunity getting into the secondary
and tertiary markets.” Pundits agree big cities such as Toronto can handle
more growth, predicting the city is going to see more development in the
next few years.
FOLLOW US:
ROSANNA CAIRA
Editor and Publisher
rcaira@kostuchmedia.com
ADVISORY BOARD
David McMillan, AXIS HOSPITALITY INTERNATIONAL;
Bill Stone, CBRE HOTELS; David Larone, CBRE HOTELS;
Anthony Cohen, CRESCENT HOTELS — GLOBAL EDGE INVEST-
MENTS; Charles Suddaby, CUSHMAN & WAKEFIELD LTD. —
HOSPITALITY & GAMING GROUP; Christiane Germain, GROUPE
GERMAIN HOSPITALITE; Michael Haywood, THE HAYWOOD
GROUP; Lyle Hall; Ryan Murray, THE PILLAR + POST HOTEL;
Geoffrey Allan, PROJECT CAPITAL MANAGEMENT HOTELS;
Stephen Renard, RENARD INTERNATIONAL HOSPITAL-
ITY & SEARCH CONSULTANTS; Anne Larcade, SEQUEL HOTELS
& RESORTS
ROSANNA CAIRA |
AMY BOSTOCK |
DANIELLE SCHALK |
TOM VENETIS |
DEREK RAE |
COURTNEY JENKINS |
JHANELLE PORTER |
NICOLE NADEAU |
CHERYLL SAN JUAN |
MARIA FAMA VIECILI |
ELENA OSINA |
WENDY GILCHRIST |
DANIELA PRICOIU |
CIRCULATION |
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