The hotel development sector across the Asia-Pacific region, excluding China, has experienced remarkable growth through the third quarter of 2024.
According to the latest Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE), the total hotel construction pipeline in the APEC region has reached new record highs.
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At the close of Q3, the pipeline stood at 2,072 projects and 410,863 rooms, marking year-over-year (YOY) increases of 7% and 3%, respectively.
Record-breaking growth in hotel development
As of the third quarter of 2024, there were 848 hotel projects under construction, with 197,576 rooms being developed. Scheduled projects for the next 12 months total 354, comprising 64,571 rooms.
However, the standout figure is the early planning stage, which has surged to a record 870 projects with 148,716 rooms—a 28% increase in projects and an 18% rise in rooms compared to the previous year.
This growth suggests a strong future for hotel development across the region, driven by increasing demand and investment.
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By GlobalData“Hotel projects across the APEC region continue to grow at an impressive rate,” said the report. “The upward trajectory is largely attributed to the strength of markets like India, Vietnam, and Indonesia, where both the number of projects and rooms are expanding rapidly.”
Upscale and luxury hotels dominate the pipeline
In terms of hotel chain scales, the upper upscale, upscale, and upper midscale categories dominate the pipeline, accounting for 61% of the total projects and 64% of the rooms.
The upscale segment is particularly noteworthy, with 510 projects and 101,067 rooms, both representing all-time highs for the region. The upper midscale category follows closely with 388 projects and 79,773 rooms, while the upper upscale chain scale includes 372 projects and 82,130 rooms.
Furthermore, luxury hotels have seen significant growth, with both the number of projects and room counts in this segment reaching new record highs.
“High-end developments are seeing a significant increase, as both domestic and international tourists continue to seek upscale and luxury experiences,” the report added. “The growth in these categories reflects broader trends in consumer demand for more premium accommodations.”
India leads, followed by Vietnam and Indonesia
India continues to be the leader in hotel development within the APEC region. At the close of Q3, India accounted for a remarkable 641 projects and 79,648 rooms, representing 31% of total projects and 19% of total rooms in the region’s pipeline.
Other top contributors to the region’s development include Vietnam with 252 projects and 88,489 rooms, and Indonesia, which boasts 179 projects and 31,801 rooms.
Thailand and Japan also feature prominently, with 161 projects and 40,770 rooms, and 150 projects and 27,461 rooms, respectively.
Notably, cities like Bangkok, Jakarta, Melbourne, Phuket, and Kuala Lumpur are leading the charge, with Bangkok alone housing 69 projects and 15,960 rooms in its pipeline.
This indicates that key metropolitan areas remain prime hotspots for investment and development, supported by growing urban populations and tourism-driven demand.
Strong opening forecast for 2024 and beyond
In the third quarter of 2024, 66 new hotels with 11,524 rooms were opened across the region. This brings the year-to-date total to 204 new hotels and 36,483 rooms.
For the remainder of the year, the LE analysts forecast that 135 new hotels with 26,848 rooms will open, bringing the total for 2024 to 339 new hotels with 63,331 rooms.
Looking further ahead, the pipeline remains strong, with an additional 339 new hotels and 72,518 rooms expected to open in 2025, followed by 337 new hotels with 65,668 rooms in 2026.
These figures indicate a robust and steady growth trajectory, with hotel developers continuing to show confidence in the region’s long-term prospects.
With this continued pipeline growth, APEC is set to remain a global leader in hotel development well into the next decade.
