Asia Pacific Sees Unmatched Growth in Hotel Construction in 2025, with India at the Forefront and Premium Segments Dominating the Regional Development Boom

Published on February 16, 2026

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The Asia Pacific (APEC) region has seen a historic surge in hotel construction, marking the close of 2025 with unprecedented project numbers. According to the latest Construction Pipeline Trend Report from Lodging Econometrics (LE), the region’s hospitality infrastructure is expanding rapidly to meet the demands of both business and leisure travelers. With 2026 on the horizon, this growth is expected to continue, making APEC one of the most attractive regions for hotel investments.

Record-Breaking Growth in APEC Hotel Construction

By the end of Q4 2025, the APEC region (excluding China) reported a remarkable 2,323 projects, totaling 433,241 rooms. This represents an 11% increase in the number of projects and a 5% rise in room count from the previous year. The continuing demand for new hotel infrastructure in this diverse region underscores the ongoing appeal of APEC’s growing economies and vibrant tourism markets.

The pipeline’s progress is also evident in the 890 projects currently under construction, which represent 38% of the total pipeline and 44% of the total room count. Furthermore, 398 new projects are scheduled to start within the next year, adding 77,767 rooms. Early-stage planning activity is also strong, with 1,035 projects and 166,203 rooms in the planning stages, reflecting a 19% growth in projects and a 12% rise in rooms YOY.

Premium Hotel Chains Lead the Way

The construction boom in the APEC region is being driven largely by the high-end hotel market. Luxury hotels saw a 14% increase YOY, with 398 projects and 75,190 rooms. This surge highlights the region’s growing demand for top-tier accommodations, particularly in key cities popular with international travelers.

Upper upscale hotels also experienced a significant boost, with 17% more projects and 13% more rooms YOY, totaling 422 projects and 88,958 rooms. The upscale segment grew by 12% in projects and 9% in rooms, reaching 568 projects and 111,296 rooms. These trends reflect an increasing desire for upscale lodging options as travelers seek more luxurious and high-quality stays in major metropolitan areas.

Meanwhile, upper midscale hotels saw a steady growth of 7% in projects YOY, totaling 376 projects and 74,749 rooms. The combined total of upscale and upper midscale hotel projects now accounts for 43% of all projects and 46% of all rooms in the APEC pipeline, reinforcing the shift towards higher-end accommodations in the region.

India Leads the Region in Hotel Development

India has emerged as the clear leader in APEC’s hotel construction surge, with 906 projects and 118,334 rooms. This represents a 31% increase in the number of projects and a 35% increase in room count compared to last year. India’s rapid economic growth, rising tourism demand, and expanding business hubs have driven this boom, making it the dominant market for hotel development in the region.

Following India, Vietnam recorded 248 projects and 84,079 rooms, showing consistent progress in its tourism infrastructure. Japan ranks third with 200 projects and 32,209 rooms, reflecting a 23% increase in projects and a 12% rise in rooms YOY. Indonesia and Thailand also saw impressive growth, with 181 projects and 30,761 rooms in Indonesia, and 167 projects and 43,067 rooms in Thailand.

Key Cities See the Brunt of Hotel Development

Cities across the APEC region are experiencing a boom in hotel construction, with Bangkok leading the pack. The Thai capital is home to 68 projects and 16,641 rooms, followed closely by Jakarta, with 46 projects and 10,159 rooms. Bengaluru stands out with its rapid growth, seeing a 45% increase in projects and a 55% rise in rooms, totaling 45 projects and 9,199 rooms. This growth in Bengaluru is indicative of the city’s expanding role as a tech and business hub, fueling demand for both high-end and midscale hotels.

Tokyo also saw significant activity, with 42 projects and 5,497 rooms, reflecting a 91% rise in projects and 31% growth in rooms YOY. Phuket, a key tourist destination in Thailand, completed the top five cities, with 41 projects and 9,583 rooms, further supporting the trend of increased hotel investment in leisure-focused destinations.

Forecast for Hotel Openings in 2026

In 2025, the APEC region welcomed 334 new hotels and 50,002 rooms into its inventory. Looking ahead, the region is set for even more hotel openings, with 338 new hotels and 67,317 rooms expected to debut in 2026. By 2027, 349 new hotels with 64,491 rooms will be added, underscoring the strong pipeline of hotel development poised to meet future demand.

Conclusion

The APEC region’s hotel construction industry has reached remarkable new heights in 2025, with India, Vietnam, and Thailand driving much of the growth. The increasing demand for upscale and luxury accommodations is reflected in the higher-end hotel construction segments, while emerging markets continue to see substantial growth in both cities and regional areas. With a strong construction pipeline and robust projections for new hotel openings, APEC is poised to remain one of the most dynamic hospitality markets in the world, providing travelers with a wealth of high-quality options in the coming years. As hotel construction continues to flourish, the region is well-positioned to meet the evolving demands of travelers and continue its growth as a leading destination for both business and leisure tourism.