China’s hotel-construction sector maintained stability at the end of 2024, with a total of 3,779 projects comprising 681,915 rooms, according to the latest data from Lodging Econometrics (LE).

The figures show little change year-on-year (YOY), despite fluctuations in different segments of the market.

Growth in projects under construction

The number of projects currently under construction increased slightly compared to the previous year, reaching 2,753 projects with 491,966 rooms. This represents a 4% rise in both projects and room numbers.

Meanwhile, the number of projects scheduled to begin construction within the next 12 months stood at 357 projects and 62,112 rooms at the end of the fourth quarter.

In contrast, the early planning phase saw a slight decline, with 669 projects accounting for 127,837 rooms.

Upper midscale and upscale segments drive development

The upper midscale segment continued to dominate development activity, closing the fourth quarter with 1,215 projects and 185,100 rooms, representing 32% of all projects in the pipeline.

The upscale segment also showed notable growth, with an 11% increase in project numbers and a 5% rise in rooms YOY, bringing the total to 1,018 projects and 218,919 rooms.

When combined with the midscale segment, which recorded 411 projects and 40,661 rooms, these three segments accounted for 70% of all projects in China’s hotel development pipeline.

Hotel conversions reach record high

Brand conversions and renovations saw significant activity in the fourth quarter, reaching a record high of 195 projects and 39,156 rooms.

This marks a substantial increase of 34% in project numbers and 37% in room count YOY.

 The rise in brand conversions reflects a growing trend of repositioning existing properties rather than developing entirely new hotels.

Major cities lead construction activity

Several key cities continued to drive hotel construction across China. Chengdu remained at the forefront, leading with 141 projects and 25,180 rooms.

Shanghai followed with 133 projects and 24,529 rooms, recording a 10% rise in projects and a 6% increase in rooms YOY. Guangzhou ranked third, with 120 projects and 24,217 rooms, while Hangzhou and Xi’an followed with 99 and 92 projects, respectively.

China saw a steady pace of hotel openings in 2024, with 871 new hotels adding 120,928 rooms. Looking ahead, forecasts suggest continued growth, with 1,090 new hotels expected to open in 2025, adding 170,214 rooms.

In 2026, 835 new hotels are projected to open, contributing a further 145,646 rooms to the market.