The Total Pipeline in Asia Pacific, Excluding China (APEC) has Hit a Record 2,056 Projects with 406,118 Rooms

In the Q2 2024 Asia Pacific, excluding China (APEC), Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE), the total pipeline in APEC has hit a record 2,056 projects with 406,118 rooms, marking a 6% increase in projects and a 1% rise in rooms year-over-year (YOY).

Currently, 864 projects with 199,784 rooms are under construction in the APEC region. Projects scheduled to start construction in the next 12 months have risen to 358 with 65,853 rooms, up 23% by projects and rooms YOY. Projects and rooms in the early planning stage have soared to a record-high 834 projects with 140,481 rooms, representing a 19% YOY increase in projects and 6% in rooms.

The upper upscale, upscale, and upper midscale chain scales dominate the pipeline, accounting for 62% of projects and 65% of rooms. Both the upper upscale and upscale chain scales hit record-high project and room counts at the end of Q2 24. The upscale segment leads with 507 projects and 100,524 rooms, while upper midscale and upper upscale stand at 390 projects/78,452 rooms and 380 projects/83,811 rooms, respectively. Notably, renovation and conversion projects in the APEC region have also reached an all-time high of 305 projects with 51,909 rooms in the second quarter.

In Q2 2024, 62 projects/12,721 rooms started construction, and 142 new projects/23,541 rooms were announced into the region’s pipeline. Fifty-seven new hotels/9,214 rooms opened in the APEC region during the second quarter, totaling to 131 new hotels/23,316 rooms opened in the first half of 2024. LE forecasts an additional 228 new hotels to open throughout Q3-Q4, bringing the total year-end 2024 openings to 359 new hotels with 69,861 rooms.

Looking ahead to 2025, LE analysts anticipate 323 new hotels with 66,523 rooms to open in the APEC region. LE’s newly released forecast for 2026 New Hotel Openings expects 341 new hotels/65,617 rooms throughout the APEC region.

India Projected to Lead Asia Pacific, excluding China, in New Hotel Openings Through 2026

Countries with the most projects in the APEC construction pipeline at Q2 are led by India with a record-high 610 projects with 75,280 rooms and accounting for 30% of the projects in the total APEC pipeline. Following at a distance are Vietnam with 247 projects/85,760 rooms, Indonesia with 181 projects/31,550 rooms, Thailand with 163 projects/38,350 rooms, and Japan with 162 projects/30,122 rooms.
At Q2, APEC cities with the largest project counts are led by Bangkok with 67 projects/15,394 rooms, Jakarta with 42 projects/8,979 rooms, and Melbourne with 40 projects/7,496 rooms. Phuket follows with 36 projects/9,050 rooms, and Sydney with 31 projects/5,225 rooms.

LE analysts forecast India to dominate the APEC region’s new hotel openings forecast over the coming years, claiming 25% of total openings in 2024 and leading with the largest number of new opens through year-end 2026.