INTERNATIONAL
REPORT — The global hotel construction pipeline has risen to a record-high
15,871 projects with 2,436,225 rooms, up 3% by projects and 2% by rooms
year-over-year, according to Lodging Econometrics data.
At the close
of the second quarter, there were 6,257 projects and 1,086,245 rooms under
construction worldwide, unchanged on a percentage basis by projects and down 3%
by rooms YOY. Projects scheduled to start construction in the next 12 months
stood at 3,870 projects and 551,188 rooms, down 3% YOY by projects but up 1% by
rooms. Projects in the early planning stage reached
a record-high 5,744 projects with 798,792 rooms, marking a 10% increase in
projects and a 9% increase in rooms, YOY.
The first half of 2025 saw 970 new hotels and 138,168 rooms open around the world, with an additional 1,884 new hotels and 280,079 rooms scheduled to open by year-end.
LE analysts forecast 2,854 new hotels and 418,247 rooms to open in 2025. With the global pipeline projects at an all-time high, LE forecasts that new hotel openings will continue with 2,531 new hotels and 382,942 rooms expected to open by year-end 2026. LE forecast 2,554 new hotels and 382,282 rooms to open worldwide by year-end 2027.
The upper
midscale and upscale chain scales dominate the global hotel construction through 2Q25,
accounting for 52% of the projects in the total pipeline. Upper-midscale hotel
projects comprised 4,463 projects and 567,396 rooms, while upscale projects and
rooms achieved record-highs at Q2, with 3,852 projects and 655,674 rooms, up 5%
by projects and 3% by rooms YOY. Upper upscale projects reached a record-high
of 1,807 projects with 385,396 rooms, up 6% by projects and 1% by rooms YOY.
Luxury projects and rooms totals also reached record-highs, an 11% YOY increase
in projects and a 9% YOY increase in rooms.
The U.S. was
the top country by project count through Q2, with 6,280 projects and 737,036
rooms, and China was in second with 3,733 projects and 672,224 rooms. The U.S.
accounted for 40% of the projects in the global pipeline, while China accounted for 24%. India was third with a record-high count of 761 projects and 99,195
rooms, Saudi Arabia was fourth with 342 projects and 92,187 rooms, and Canada was
fifth with 333 projects and 44,764 rooms.
Around the
world, Dallas had the largest pipeline with 199 projects and a record-high
24,497 rooms. Atlanta was second with 165 projects and 19,027 rooms. Chengdu,
China, was third with 143 projects/25,331 rooms.