Lodging Econometrics’ 1Q24 report shows a 6% increase in
projects, 3% increase in rooms, year-over-year.
GLOBAL REPORT - Global pipeline at the end of 1Q24 hit an all-time high for
room counts at 2,382,195 (15,366 projects) and highlights a significant
increase in full-service projects at the close of the first quarter, according
to new Lodging Econometrics data. LE analysts report a 6% increase in projects
and a 3% increase in rooms year-over-year (YOY).
There are 6,195 projects/1,101,602 rooms currently under construction worldwide
at Q1. Projects scheduled to start construction in the next 12 months stand at
3,840 projects/528,251 rooms, for an 8% increase by projects and a 5% increase
by rooms YOY. Projects and rooms in the early planning stage are at all-time
highs and stand at 5,331 projects/752,342 rooms at the Q1 close, increasing 12%
and 9% YOY, respectively.
There are 6,195 projects/1,101,602 rooms currently under construction worldwide at Q1. Projects scheduled to start construction in the next 12 months stand at 3,840 projects/528,251 rooms, for an 8% increase by projects and a 5% increase by rooms YOY.
Lodging Econometrics
Notably, full-service branded and unbranded projects have experienced a
resurgence, dominating the pipeline at Q1. At the close of the first quarter,
luxury hotel projects and room counts reached record highs of 1,215
projects/239,744 rooms, a 12% increase by projects and a 6% increase by rooms
YOY, upper upscale closed Q1 with 1,999 projects/445,207 rooms, up 7% by
projects and 5% by rooms YOY, upscale hotel projects stand at a record 4,093
projects with 711,510 rooms, up 7% by projects and 4% by rooms YOY, and casinos
increased 6% by projects and 3% by rooms YOY to stand at 53 projects/25,023
rooms.
Globally, the countries with the greatest number of full-service projects in
the total pipeline at Q1 are led by the United States with 2,272
projects/341,854 rooms, accounting for 41% of the projects in the total global
full-service pipeline. China follows with 1,688 projects/414,323 rooms.
Distantly following is India with 334 projects/46,586 rooms.
Next is Saudi Arabia with 270 projects/62,744 rooms, and Vietnam with 186
projects/61,426 rooms. These five countries combined, account for 86% of the
full-service projects in the total global pipeline.
Leading cities, worldwide, with the largest full-service pipeline totals at Q1
are Chengdu, China, with 80 projects/21,130 rooms; Riyadh, Saudi Arabia, with
75 projects/15,025 rooms; Dallas, Texas, with 75 projects/10,434 rooms; Los
Angeles, California, with 68 projects/13,188 rooms, and Shanghai, China, with
67 projects/16,569 rooms.
Globally, during the first quarter, 177 new full-service hotels opened,
accounting for 32,611 rooms with upscale projects accounting for over 50% of
the openings. For the remainder of 2024 and through 2025, LE analysts expect
upscale projects to continue to account for the majority of projects to open
from the total full-service pipeline.
Overall, however, throughout the next three quarters, LE
forecasts an additional 952 new full-service hotels/181,148 rooms to open,
totaling 1,129 new full-service hotels with 213,759 rooms to open by year-end
2024. Looking ahead, the LE forecast for new hotel openings expects another
1,260 new full-service hotels/244,275 rooms to open worldwide in 2025.