Upscale and Upper Midscale Hotel Projects Dominate China’s Pipeline at Q3 2024, Commanding 59% of Total Construction Pipeline

In the Q3 2024 China Construction Pipeline Trend Report by Lodging Econometrics (LE), at the end of the quarter, China’s total hotel construction pipeline reached a record high project count of 3,853 projects with 703,312 rooms, up 4% by projects and 3% by rooms year-over-year (YOY).

At the close of the third quarter, there are 2,793 projects/505,106 rooms under construction in China, a cyclical peak, and up 5% by projects and rooms YOY. Projects scheduled to start construction in the next 12 months stand at 348 projects/60,095 rooms, down a slight 2% by projects and 8% by rooms YOY. Projects in early planning are up 1% by projects and down 1% by rooms YOY, reaching 712 projects with 138,111 rooms.

The record-high project and room counts in the total pipeline can be attributed to the continued growth of the upscale and upper midscale chain scales, both of which hit record highs this quarter. The upscale chain scale ended Q3 with 1,026 projects/224,688 rooms, up 14% by projects and 9% by rooms YOY. The upper midscale chain scale has 1,230 projects/188,280 rooms, up 7% by projects and 4% by rooms YOY. Combined, these two chain scales account for 59% of both projects and rooms in China’s hotel construction pipeline.

Brand conversion totals in China increased 12% YOY by projects and 20% YOY by rooms, with 174 hotels/29,893 rooms. Construction starts also increased in Q3, rising 8% YOY by projects and 10% by rooms, to close the quarter at 241 projects/39,138 rooms.

Through the third quarter of 2024, 662 new hotels, accounting for 91,463 rooms, have opened in China. The LE forecast for new hotel openings expects another 326 hotels with 53,654 rooms to open in the fourth quarter, bringing the forecasted new hotel openings to 988 new hotels with 145,117 rooms by year-end 2024.

LE analysts expect new hotel openings in China to rise in 2025, with 1,101 new hotels with 176,140 rooms forecast to open in 2025. In 2026, analysts expect another 799 new hotel openings with 150,069 rooms to open.

To purchase the full Q3 2024 China Hotel Construction Pipeline Trend Report, please visit: Purchase Reports – Construction Pipeline Trend Reports.

Top 5 Cities for Hotel Construction in China at the end of Q3 2024

Cities in China with the largest pipelines, at the Q3 close, are:

• Chengdu, with 152 projects/27,424 rooms, up 6% by projects and down 6% by rooms YOY

• Shanghai, with 132 projects/25,081 rooms, up 9% by projects and 8% by rooms YOY

• Guangzhou, with 127 projects/25,763 rooms, up 18% by projects and 14% by rooms YOY

• Hangzhou, with 103 projects/20,356 rooms, up 14% by projects and 8% by rooms YOY

• Xi’an, with 91 projects/16,303 rooms, up 2% by both projects and rooms YOY

To purchase the reports on individual cities, please visit: Purchase Reports – Market Trend Reports.