Asia Pacific, Excluding China (APEC), Hotel Construction Pipeline Demonstrates Record-High Project & Room Counts

According to the recent Construction Pipeline Trend Report from Lodging Econometrics (LE), the Asia Pacific, excluding China (APEC), hotel construction pipeline hit an all-time high at the Q4 2024 close, climbing 5% year-over-year (YOY) to reach record counts of 2,085 projects/412,358 rooms.

At the close of the quarter, projects under construction accounted for 41% of the total pipeline with 848 projects and 47% of the rooms in the pipeline with 196,408 rooms. Projects scheduled to start construction in the next 12 months increased 7% YOY to 367 projects/67,617 rooms. Projects in the early planning stage saw significant growth, up 22% YOY to reach a record high of 870 projects with 148,333 rooms.

The higher-end chain scales continue to dominate the APEC region’s pipeline at the Q4 2024 close by projects. Upscale projects reached an all-time high room count and rose 16% by projects YOY to close the quarter at 517 projects/102,909 rooms. Upper midscale hotel projects increased YOY and stand at 376 projects/77,174 rooms at Q4. Upper upscale projects also grew slightly YOY at Q4 with 368 projects/80,095 rooms. In total, these three chain scales account for 1,261 projects totaling 260,178 rooms, or 60% of projects and 63% of rooms in APEC’s pipeline.

In 2024, the region saw 291 new hotels/55,852 rooms open, with 72 hotels/16,234 rooms opening in the fourth quarter alone. LE analysts forecast 359 new hotels/73,505 rooms to open in 2025 and 337 new hotels/66,213 rooms to open in 2026.

Record-highs in India’s Hotel Construction Pipeline at Q4 ‘24

Countries with the largest construction pipelines are led by India, which hit record highs with 693 projects/87,512 rooms, up 35% by projects and 43% by rooms YOY. Next is Vietnam, with 251 projects/90,245 rooms, followed by Indonesia with 174 projects/31,193 rooms. Thailand is fourth with 168 projects and an all-time high room count of 43,381 rooms, and then Japan with 163 projects/28,762 rooms.

Cities with the largest construction pipelines are led by Bangkok, Thailand with 68 projects/16,641 rooms, followed by Jakarta, Indonesia with 45 projects/10,199 rooms, and Phuket, Thailand with 40 projects/10,194 rooms. Melbourne, Australia follows with 36 projects/6,851 rooms and then Bengaluru, India with 31 projects/5,935 rooms.

China’s Hotel Pipeline Holds Steady at 3,779 Projects, Upper Midscale Dominates Growth

According to the latest China Construction Pipeline Trend Report from Lodging Econometrics (LE), China’s total hotel construction pipeline remained stable at 3,779 projects/681,915 rooms at the close of the fourth quarter of 2024, showing minimal change year-over-year (YOY).
Projects currently under construction stand at 2,753 projects/491,966 rooms, up 4% by both projects and rooms YOY. Projects scheduled to start construction in the next 12 months stand at 357 projects/62,112 rooms at Q4, while projects in the early planning stage dropped slightly to 669 projects/127,837 rooms.

The upper midscale segment is the preferred chain scale for development at Q4 close with 1,215 projects/185,100 rooms, accounting for 32% of the projects in China’s total pipeline. The upscale segment continued to show strong growth in the fourth quarter, increasing 11% by projects and 5% by rooms YOY to close with 1,018 projects/218,919 rooms. Together with the midscale chain scale’s 411 projects/40,661 rooms, these three chain scales account for 70% of all projects in China’s pipeline.

Notably, brand conversions reached a new record-high room count at Q4, with combined hotel renovations and brand conversions totaling 195 projects/39,156 rooms, representing a significant 34% increase in projects and a 37% increase in rooms YOY.

China saw robust hotel openings throughout 2024, with 871 new hotels accounting for 120,928 rooms open during the year. Looking ahead, LE forecasts continued growth with 1,090 new hotels/170,214 rooms anticipated to open in 2025, followed by 835 new hotels/145,646 rooms projected to open in 2026.

Chengdu Continues to Lead China’s Hotel Construction Pipeline

At the close of 2024’s fourth quarter, Chengdu continues to lead China’s hotel construction pipeline with 141 projects/25,180 rooms. Shanghai follows with 133 projects/24,529 rooms, showing steady growth of 10% by projects and 6% by rooms YOY. Guangzhou ranks third with 120 projects/24,217 rooms, then Hangzhou with 99 projects/19,874 rooms, and Xi’an with 92 projects/16,083 rooms.