Lodging Econometrics said China’s hotel construction
pipeline stands at 3,815 projects, with an astounding 72% under construction.
INTERNATIONAL
REPORT — China’s hotel construction pipeline has reached a historic peak
through the second quarter, according to data from Lodging Econometrics.
The
pipeline now stands at an unprecedented 3,815 projects and 699,786 rooms,
reflecting a year-over-year increase of 4% in projects and 3% in rooms. LE
analysts say this growth underscores the country’s robust hospitality sector
and continued economic expansion. This follows LE numbers that show that Asia
Pacific, excluding China (APEC), has also hit record numbers for total projects
through the first half of 2024.
Digging
deeper into the pipeline numbers, projects under construction have hit a new
all-time high of 2,743 projects (+3% YOY) and 498,551 rooms (+4% YOY),
representing 72% of China’s current total pipeline.
Projects
scheduled to start construction within the next 12 months have also seen
significant growth, standing at 390 projects (+9% YOY) and 70,520 rooms (+10%
YOY). Projects in the early planning stage grew by 4% YOY, closing the quarter
at 682 projects and 130,715 rooms.
Renovations
and conversion activity also saw an eye-popping increase in the first half of
2024, hitting an all-time high with 206 projects (+32% YOY) and 42,084 rooms
(+47% YOY).
The
first half of 2024 saw the opening of 341 new hotels and 47,084 rooms in China
and LE analysts forecast an additional 596 new hotels with 92,589 rooms to open
in the second half of the year, bringing the total projected openings for 2024
to 937 new hotels and 139,673 rooms.
LE is
projecting continued growth in new hotel openings in the coming years, with a
forecast of 994 new hotels and 166,683 rooms to open in 2025 and 759 new hotels
and 146,894 rooms in 2026. This indicates sustained growth in China’s
hospitality sector for the foreseeable future.
PREVIOUS LODGING ECONOMETRIC REPORTS
Last
week, we discussed that almost half of Europe’s pipeline is currently under
construction.
Earlier
in September, we talked about why the pipeline in Latin America is surging.
In
August, we talked about how the U.S. construction pipeline is sitting at an
all-time high
In
early July, we discussed the hottest development markets in Latin America.
In
late June, we talked about why Dallas is still leading the U.S. construction
pipeline.