The hotel development sector in the Asia-Pacific region, excluding China, has experienced remarkable growth in the third quarter of 2024.
According to the latest Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE), the overall hotel construction pipeline in the APEC region has reached new record highs.
At the end of the third quarter, the pipeline stood at 2,072 projects and 410,863 rooms, an annual increase of 7% and 3% respectively.
As of the third quarter of 2024, there were 848 hotel projects under construction, with 197,576 rooms in development. Planned projects for the next twelve months total 354, consisting of 64,571 rooms.
The standout figure, however, is the early planning phase, which has risen to a record 870 projects with 148,716 rooms – a 28% increase in projects and an 18% increase in rooms compared to the previous year.
This growth signals a strong future for hotel development across the region, driven by increasing demand and investment.
“Hotel projects in the APEC region continue to grow impressively,” the report said. “The upward trajectory is largely attributed to the strength of markets such as India, Vietnam and Indonesia, where both the number of projects and the number of rooms are growing rapidly.”
In terms of hotel chains, the upper luxury, luxury and upper mid-range categories dominate the pipeline, accounting for 61% of total projects and 64% of rooms.
The luxury segment is particularly notable, with 510 projects and 101,067 rooms, both record highs for the region. The upper midscale category follows closely with 388 projects and 79,773 rooms, while the upper luxury chain scale includes 372 projects and 82,130 rooms.
Furthermore, luxury hotels have experienced significant growth, with both the number of projects and the number of rooms in this segment reaching new record highs.
“High-end developments are seeing a significant increase as both domestic and international tourists continue to seek luxury and luxury experiences,” the report said. “The growth in these categories reflects broader trends in consumer demand for more premium accommodations.”
India remains a leader in hotel development within the APEC region. At the end of the third quarter, India was responsible for a remarkable 641 projects and 79,648 rooms, representing 31% of the total number of projects and 19% of the total number of rooms in the region’s pipeline.
