Investors aren’t turning away from a market segment analysts see as the workhorse for major hotel companies — even if there are shinier places to park capital.
Resorts and lifestyle hotels were the hotel industry’s rare growth story during the pandemic. But construction and development activity at companies like Hilton and IHG show mid-scale brands like Tru, Home2 Suites, and Holiday Inn account for some of the largest shares of the industry’s development pipeline.
Hilton added nearly 100 hotels to its Tru portfolio since the beginning of 2020. Home2 Suites, with 379 projects in development at the end of the second quarter, accounts for the biggest share of Hilton’s U.S. development pipeline, according to Lodging Econometrics. Just three brands — Home2 Suites, IHG’s Holiday Inn Express, and Marriott’s Fairfield Inn — comprise 20 percent of the total hotel construction pipeline in the U.S.
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