The hottest hotel developments in Asia Pacific

Editor’s note: Lodging Econometrics separates the Chinese market, and Hotel Investment Today will report on those numbers in the coming weeks.

INTERNATIONAL REPORT — The hotel construction pipeline in Asia Pacific (excluding China) has continued to show steady year-over-year growth at the end of the third quarter of 2023, according to recently released data from Lodging Econometrics.

The region has 1,929 projects and 398,199 rooms, up 3% by project YOY.

Bangkok, Thailand, is the top market for development, with 75 projects and 18,383 rooms. Sixty of those projects are new construction.

Jakarta, Indonesia, is second on the list with 57 projects and 11,316 rooms. All but 8 of those projects are new construction.

Melbourne, Australia, is third, with 45 projects and 8,410 rooms. Forty-one of those projects are new construction.

Kuala Lumpur, Malaysia, is fourth, with 43 projects and 12,598 rooms. All but six of them are new construction.

Phuket, Thailand, is fifth, with 41 projects and 11,936 rooms. Thirty-four of the projects are new construction.

In these five markets, 52% of the development is in the upscale and upper midscale segments.

Of the 1,929 projects in the Asia Pacific region (excluding China), 954 are currently under construction, accounting for 220,336 rooms. There are 295 projects scheduled to start construction in the next 12 months, while 680 are in the early planning stages.

The luxury, upper upscale and upscale segments account for 53% of the region’s construction pipeline.

Despite not having any markets in the top five, India is the leading country, with 481 projects and 57,879 rooms, 25% of the region’s pipeline. Vietnam is second with 243 projects and 87,062 rooms, followed by Indonesia with 212 projects and 35,333 rooms. Japan is fourth with 156 projects and 31,085 rooms, and Thailand is fifth with 155 projects and 38,706 rooms.

The region had 270 new hotels with 40,972 rooms open through the close of 3Q23 and is forecasted to have another 113 more openings by the end of the year.

LE is forecasting 406 new hotel openings in 2024 with 78,110 rooms. The forecast shows a slowing in 2025, with 358 new hotel openings and 74,199 rooms.

Take a look at the graphic below for more detailed numbers.