APEC hotel openings and pipelines hit new highs in 2024
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.
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.
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.
“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.”
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 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.
