The Asia Pacific region, excluding China, is witnessing unprecedented growth in hotel construction. According to Lodging Econometrics (LE) data, the pipeline has reached a record-breaking 2,056 projects, with over 406,118 rooms. This marks a significant year-over-year increase of 6% in total projects and 1% in room count, highlighting the region’s robust economic growth and rising tourism demand.
This growth is reflected across all stages of the construction pipeline. Currently, 864 projects are under construction, representing 199,784 rooms. Projects scheduled to break ground within the next 12 months have surged to 358 projects and 65,853 rooms, reflecting a substantial 23% increase compared to the previous year.
The early planning stages have also seen a dramatic rise, with 834 projects and 140,481 rooms in the pipeline, marking a 19% increase in projects and a 6% increase in room count year-over-year. This trend indicates growing investor confidence in the region’s hotel sector and the increasing need for new accommodations to meet tourist demand.
In addition to new builds, the region is seeing a surge in renovation and conversion projects. These projects hit an all-time high in 2024, with 305 projects and 51,909 rooms as developers aim to revitalise older properties to better align with modern guest expectations and market demands.
LE expects the momentum to continue into the second half of 2024, with 228 new hotel openings projected. This would bring the total number of hotels opened in 2024 to 359, adding 69,861 rooms to the region. The forecast remains strong for 2025 and 2026, with projections for over 300 new hotel openings each year, maintaining the region’s growth trajectory.
This construction boom underscores the resilience and expansion of the hospitality sector in the APEC region, driven by growing travel demand and strong economic fundamentals.
LE is a globally recognised leader in providing real estate intelligence for the lodging industry. They specialise in compiling comprehensive data on hotel construction pipelines, renovation projects, and brand conversions across various regions worldwide.
