Asia Pacific’s Hotel Construction hits record highs excluding China in Q4 2023

Monday, February 12, 2024

The latest Construction Pipeline Trend Report from Lodging Econometrics (LE) reveals that the total hotel construction pipeline in the Asia Pacific excluding China (APEC) saw a 4% year-over-year (YOY) increase, reaching a record-high of 1,977 projects and 402,156 rooms by the end of the fourth quarter of 2023.

As of the quarter’s close, projects currently under construction represent 47% of the total pipeline, totaling 922 projects and 212,607 rooms. Meanwhile, projects scheduled to commence construction in the next 12 months grew by 8% YOY, totaling 342 projects and 65,079 rooms. Projects in the early planning stage also surged by 11% YOY, reaching an all-time high of 713 projects and 124,470 rooms.

Notably, higher-end chain scale projects experienced an increase in the APEC region, with luxury, upper upscale, and upscale segments all hitting record highs in the fourth quarter. Luxury hotel projects rose by 9% YOY to 241 projects and 46,808 rooms, while upper upscale projects grew by 12% compared to Q4 2022, totaling 370 projects and 83,083 rooms. Similarly, upscale projects increased by 6% YOY, closing the quarter with 447 projects and 96,730 rooms.

Leading the pack in terms of project counts in the APEC region at the end of Q4 2023 are India, with a record 514 projects and 61,075 rooms, followed by Vietnam with 253 projects and 88,827 rooms, and Indonesia with 208 projects and 34,682 rooms. Thailand and Japan also feature prominently, with 155 projects each and 37,955 rooms and 30,024 rooms respectively.

Among the cities with the largest construction pipelines as of Q4 2023 are Bangkok, Thailand, boasting 61 projects and 14,915 rooms; Jakarta, Indonesia, with 50 projects and 9,748 rooms; and Melbourne, Australia, with 45 projects and 8,354 rooms. Kuala Lumpur, Malaysia, and Phuket, Thailand, follow closely with 36 projects each and 10,736 rooms and 9,525 rooms respectively.

In terms of new openings, the APEC region welcomed 357 new hotels and 57,470 rooms in 2023. Looking ahead, LE analysts anticipate 381 new hotels with 74,341 rooms to open in 2024, followed by 379 new hotels with 76,422 rooms in 2025.

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