Hotel Development Trends & Projections
Higher-End Chain Scales Drive Hotel Pipeline to Record-High Project Totals in Asia Pacific Region, Excluding China
According to the recent Construction Pipeline Trend Report from Lodging Econometrics (LE), the Asia Pacific, excluding China (APEC), hotel construction pipeline reached a record-high project count at the Q4 2025 close, climbing 11% year-over-year (YOY) to reach 2,323 projects/433,241 rooms, up 5% by rooms YOY.
At the close of the quarter, hotel projects under construction in the Asia Pacific region, excluding China, accounted for 38% of the total pipeline with 890 projects, up 5% YOY, and 44% of the rooms in the pipeline with 189,271 rooms. Projects scheduled to start construction anytime in the next 12 months increased 8% by projects and 15% by rooms YOY to stand at 398 projects/77,767 rooms. Projects in the early planning stage saw significant growth, up 19% by projects and 12% by rooms YOY, to reach record-high counts of 1,035 projects/166,203 rooms.
The higher-end chain scales continue to dominate the APEC region’s pipeline at the Q4 2025 close. Luxury projects reached record-high project counts, up 14% YOY, to close the quarter at 398 projects/75,190 rooms. Upper upscale projects hit record highs by both projects and rooms, increasing 17% by projects and 13% by rooms YOY to stand at 422 projects/88,958 rooms. Upscale projects also reached record highs, up 12% by projects and 9% by rooms YOY, closing the quarter at 568 projects/111,296 rooms. Upper midscale hotel projects increased 7% by projects YOY and stand at 376 projects/74,749 rooms at Q4. The top two chain scales by project count, upscale and upper midscale, account for 990 projects totaling 200,254 rooms, or 43% of projects and 46% of rooms in APEC’s pipeline.
In 2025, the APEC region saw 334 new hotels/50,002 rooms open. LE analysts forecast 338 new hotels/67,317 rooms to open in 2026 and 349 new hotels/64,491 rooms to open in 2027.
India Leads the Region with a Record-High 906 Projects
Countries with the largest construction pipelines are led by India, which hit record highs with 906 projects/118,334 rooms, up 31% by projects and 35% by rooms YOY, accounting for 39% of the projects in the region’s total pipeline. Next is Vietnam with 248 projects/84,079 rooms, followed by Japan with 200 projects/32,209 rooms, up 23% by projects and 12% by rooms YOY. Indonesia is fourth with 181 projects/30,761 rooms, and then Thailand with 167 projects/43,067 rooms.
Cities with the largest construction pipelines are led by Bangkok, Thailand with 68 projects/16,641 rooms, followed by Jakarta, Indonesia with 46 projects/10,159 rooms, and Bengaluru, India with 45 projects/9,199 rooms, up 45% by projects and 55% by rooms YOY. Tokyo, Japan follows with 42 projects/5,497 rooms, up 91% by projects and 31% by rooms YOY, and then Phuket, Thailand with 41 projects/9,583 rooms.
China’s Hotel Construction Pipeline Sees Record-High Brand Conversion Activity, Upscale and Upper Midscale Chain Scales Drive Growth at Q4 Close
According to the latest China Construction Pipeline Trend Report from Lodging Econometrics (LE), China’s total hotel construction pipeline stands at 3,608 projects/644,938 rooms at the close of the fourth quarter of 2025.
Hotel projects currently under construction in China stand at 2,592 projects/458,734 rooms, while projects scheduled to start construction sometime within the next 12 months stand at 366 projects/62,119 rooms, up 3% by projects year-over-year (YOY). Projects in the early planning stage total 650 projects/124,085 rooms at Q425.
The upper midscale chain scale remains the preferred chain scale for development at Q425 close with 1,226 projects/182,937 rooms, up 2% by projects YOY and accounting for 34% of the projects in China’s total pipeline. The upscale chain scale continues its strong performance, increasing 5% by projects and 1% by rooms YOY to stand at 1,066 projects/221,714 rooms, representing 30% of the country’s pipeline. Together, these two chain scales account for 64% of all projects in China’s pipeline, with a combined total of 2,292 projects/404,651 rooms, up 7% by projects and 1% by rooms YOY.
Notably, brand conversions reached a new record-high in both project and room counts at Q425, and hotel renovations and brand conversions combined also achieved a record-high total, standing at 265 projects/48,983 rooms, representing a significant 36% increase in projects and a 25% increase in rooms YOY.
China saw robust hotel openings throughout 2025, with 970 new hotels accounting for 141,236 rooms opening during the year. Looking ahead, LE forecasts 957 new hotels/147,474 rooms anticipated to open in 2026, followed by 821 new hotels/139,038 rooms projected to open in 2027.
Chengdu Continues to Lead Hotel Construction in China
At the close of 2025’s fourth quarter, Chengdu continues to lead China’s hotel construction pipeline with 136 projects/24,216 rooms. Guangzhou follows with 126 projects/25,329 rooms, showing steady growth of 5% by both projects and rooms YOY. Shanghai ranks third with 107 projects/20,203 rooms, then Hangzhou with 100 projects/18,418 rooms, and Xi’an with 83 projects/14,777 rooms.