Hotel Development Trends & Projections
Hotel Construction Pipeline in the Asia Pacific Region, Excluding China, Reaches New Record-High
As seen in the Q2 2025 Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE), the total pipeline in the Asia Pacific region, excluding China (APEC), reached a record-breaking project total of 2,140 projects with 409,616 rooms. This new all-time high represents a 4% year-over-year (YOY) increase in projects and a 1% YOY increase in rooms.
At the close of the second quarter, there are 872 projects/190,179 rooms under construction throughout the region. In addition, there are 380 projects/74,333 rooms scheduled to start construction in the next 12 months, marking a 6% YOY increase in projects and a 13% increase YOY in rooms. The early planning stage reached a new record-high project total at Q2 with 888 projects totaling 145,104 rooms, reflecting a 6% YOY increase in projects and a 3% YOY increase in rooms.
Construction starts in the region were strong in Q2 2025, with 89 projects/15,142 rooms breaking ground, marking a 44% increase in projects and a 19% increase in rooms YOY. The region also recorded 164 new project announcements totaling 24,703 rooms at the close of the quarter, up 15% by projects and 5% by rooms YOY. Combined hotel renovations and brand conversions stand at 255 projects/46,562 rooms.
Standout chain scales in the APEC region at the Q2 close include the upscale chain scale with record-high project and room totals of 534 projects and 105,002 rooms, up 7% by projects and 6% by rooms YOY, the upper upscale scale, also at record-high project and room counts of 386 projects/82,230 rooms, up 4% by projects YOY, and the luxury chain scale with 352 projects/67,506 rooms, up 14% by projects and 12% by rooms YOY.
During the first half of 2025, 130 new hotels totaling 22,182 rooms opened in the APEC region, with an additional 219 new hotels/46,315 rooms forecast to open in the second half of the year. LE is forecasting a total of 349 new hotels and 68,497 rooms to open by year-end 2025. Looking ahead to 2026, LE analysts forecast an additional 288 new hotels and 60,216 rooms to open throughout the APEC region. Announcing for the first time at Q2, LE’s 2027 total year-end forecast anticipates 303 new hotels and 54,323 rooms to open across the APEC region.
Top Countries & Cities in Asia Pacific, excluding China
The top countries in the APEC region by project count are led by India with a new record-high project and room count of 761 projects/99,195 rooms, up 25% by projects and 32% by rooms YOY. Vietnam follows with 247 projects/83,022 rooms, then Japan with 177 projects/28,784 rooms, up 9% by projects YOY. Indonesia stands at 169 projects/29,519 rooms, and Thailand with 167 projects/42,909 rooms. These five countries combined account for 71% of the region’s total pipeline projects.
Cities in the APEC region with the largest pipelines by project count at Q2 are led by Bangkok, Thailand, with 68 projects/16,791 rooms, up 9% by rooms YOY. Jakarta, Indonesia, follows with 44 projects/9,874 rooms, up 5% by projects and 10% by rooms YOY. Next is Phuket, Thailand with 41 projects/10,310 rooms, up 14% by both projects and by rooms YOY. At the Q2 close, Tokyo, Japan, stands at 38 projects/5,240 rooms. Following Tokyo, is Bengaluru, India with 36 projects/7,112 rooms, up 44% by projects and 52% by rooms YOY.
China’s Hotel Construction Pipeline Shows Relative Stability as Upscale Chain Scale Sets New Records at Q2 Close
Lodging Econometrics’ (LE’s) Q2 2025 Hotel Construction Pipeline Trend Report reveals China’s construction pipeline stands at 3,733 projects/672,224 rooms at the close of the second quarter.
At the close of the second quarter, China has 2,712 projects/482,138 rooms under construction. Claiming 73% of the total pipeline, the majority of the projects in China’s hotel construction pipeline at Q2 are currently in the under construction stage. Projects scheduled to start construction in the next 12 months stand at 352 projects/62,292 rooms, while 669 projects/127,794 rooms are in the early planning stage.
Construction starts in the second quarter stood at 192 projects/30,570 rooms. Combined hotel renovations and brand conversions reached a new all-time high project total this quarter at 213 projects/38,661 rooms, up 3% by projects YOY.
The upper midscale chain scale continues to lead China’s pipeline with 1,194 projects/182,541 rooms, representing 32% of all projects in the total pipeline. The upscale chain scale reached new all-time high project totals and new all-time high room totals this quarter, growing to 1,072 projects/225,407 rooms, up 9% by projects and 3% by rooms year-over-year (YOY). Together, the upscale and upper midscale chain scales account for 61% of projects and 61% of rooms in China’s construction pipeline. The luxury chain scale stands at 257 projects/56,882 rooms.
During the first half of 2025, 322 new hotels accounting for 48,794 rooms opened in China, with an additional 834 new hotels/122,068 rooms forecast to open in Q3-Q4. LE analysts forecast a total of 1,156 new hotels/170,862 rooms to open by year-end 2025. In 2026, LE analysts forecast another 769 new hotels/135,138 rooms to open, and announcing for the first time, the LE forecast for new hotel openings in 2027 predicts 656 new hotels with 125,686 rooms to open.
Cities in China with the Greatest Number of Hotel Construction Projects at Q1 2025
At the Q2 close, Chengdu has the greatest number of projects in the country’s total hotel construction pipeline, with 143 projects/25,331 rooms. Shanghai follows with 124 projects/22,602 rooms. Next is Guangzhou with 114 projects/23,143 rooms, then Hangzhou with 100 projects/19,968 rooms, followed by Xi’an with 86 projects/15,292 rooms.