Asia Pacific, Excluding China (APEC), Hotel Construction Pipeline Continues Record Growth in Early Planning Stage at Q1 2025 Close

As seen in the Q1 2025 Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE), the total pipeline in the Asia Pacific region, excluding China, (APEC) stands at 2,074 projects/408,213 rooms, representing a 3% year-over-year (YOY) increase in projects and a 1% YOY increase in rooms.

At the close of the first quarter, there are 872 projects/198,640 rooms under construction throughout the region, a 1% YOY increase in projects. Projects scheduled to start construction within the next 12 months stand at 328 projects/66,559 rooms. At Q1, the early planning stage reached a new record-high project total of 874 projects totaling 143,014 rooms, reflecting a 7% YOY increase in projects and a 3% YOY increase in rooms.

Standout chain scale segments in the APEC region at the Q1 close include the upscale chain scale with a new record-high room total of 519 projects/103,815 rooms, up 9% by both projects and rooms YOY. Next is the upper upscale segment, reaching a new record-high project count of 388 projects/83,070 rooms, and up 4% by projects and 2% by rooms YOY. These top two chain scales combined account for 44% of projects and 46% of rooms in the region’s total pipeline.

Construction starts in the region saw considerable growth in Q1 2025, with 115 projects/19,855 rooms breaking ground, marking a 55% increase in projects and a 70% increase in rooms YOY. The APEC region also recorded 124 new project announcements (NPAs) with 20,181 rooms at the close of the first quarter, while combined hotel renovations and brand conversions stand at 211 projects/43,230 rooms.

During the first quarter, 65 new hotels comprising 11,151 rooms opened in the APEC region, with an additional 296 new hotels/58,972 rooms forecast to open through Q2-Q4 2025. LE is forecasting a total of 361 new hotels and 70,123 rooms to open by year-end 2025. Looking ahead to 2026, LE analysts anticipate 311 new hotels and 63,544 rooms to open throughout the APEC region.

Top Countries in the APEC Region by Project Count at Q1 ‘25

The top countries in the APEC region by project count are led by India with a new record-high project and room count of 693 projects/88,884 rooms, up 19% by projects and 27% by rooms YOY. Vietnam follows with 251 projects/90,738 rooms, up 5% by projects and 7% by rooms YOY, and Thailand with a new record-high room count of 170 projects/43,730 rooms, up 6% by projects and 18% by rooms YOY. Indonesia follows with 170 projects/29,797 rooms, and Japan with 164 projects/27,572 rooms. These five countries combined account for 70% of the projects in the region’s total pipeline.

APEC cities with the largest pipelines by project count are led by Bangkok, Thailand with 71 projects/17,531 rooms, up 6% by projects and 13% by rooms YOY. Jakarta, Indonesia, follows with 45 projects/10,135 rooms, then Phuket, Thailand with 39 projects/9,810 rooms. Melbourne, Australia stands at 35 projects/6,655 rooms, and Bengaluru, India rounds out the top five with 32 projects/6,282 rooms, up 39% by projects and 46% by rooms YOY.

Upscale Chain Scale Reaches All-Time Pipeline High as China’s Construction Pipeline Adjusts

Lodging Econometrics (LE’s) Q1 2025 Hotel Construction Pipeline Trend Report for China reveals that the construction pipeline stands at 3,704 projects/670,185 rooms, which is down slightly from the peak project total China’s pipeline reached in Q3 2024.

At the close of the first quarter, China has 2,752 projects/490,897 rooms under construction, 316 projects/55,287 rooms are scheduled to start construction anytime within the next 12 months, while 636 projects/124,001 rooms are in the early planning stage.

Construction starts in China stood at 237 projects/38,775 rooms at the end of the first quarter, showing a 13% increase in projects and a 16% increase by rooms compared to the previous quarter (Q4 2024 with 210 projects/33,538 rooms). Meanwhile, hotel renovations and brand conversions in China at Q1 increased to 189 projects/34,797 rooms, up 12% by projects YOY.

The upper midscale chain scale continues to lead China’s hotel construction pipeline at the close of the first quarter with 1,161 projects/177,644 rooms. Upscale chain scale projects in China reached an all-time high project total at Q1, standing at 1,043 projects/223,499 rooms, and up 11% by projects YOY and 5% by rooms YOY. Together, these two leading chain scales account for 60% of projects and 60% of rooms in the country’s total pipeline.
projects/16,006 rooms.

During the first quarter, 144 new hotels/21,797 rooms opened in China, with an additional 1,009 new hotels/151,907 rooms forecast to open throughout Q2-Q4. LE analysts forecast a total of 1,153 new hotels/173,704 rooms to open in China by year-end 2025, while for 2026, 765 new hotels/133,332 rooms are forecast to open.

Cities in China with the Greatest Number of Hotel Construction Projects at Q1 2025

Cities in China with the greatest number of hotel construction projects in the total pipeline at the close of the first quarter continue to be led by Chengdu, with 145 projects/25,898 rooms. Shanghai follows with 131 projects/24,733 rooms. Next is Guangzhou with 119 projects/24,384 rooms, up 8% by projects and 5% by rooms YOY. Guangzhou is followed by Hangzhou, with 96 projects/19,425 rooms, and Xi’an, with 89 projects/15,768 rooms.