Wednesday, August 14, 2024
Reading time: 2 Minutes
China’s hotel construction pipeline reached a record high of 3,815 projects and 699,786 rooms in the second quarter of 2024, representing significant year-on-year growth in projects and rooms.
The latest hotel construction pipeline trends report for Q2 2024 released by Lodging Econometrics shows that the hotel construction pipeline in China has reached new highs. By the end of the second quarter, the pipeline reached a historic high of 3,815 projects with 699,786 rooms – a 4% growth in projects and a 3% increase in room count year-on-year.
The report highlights that there are currently 2,743 projects with 498,551 rooms under construction, accounting for 72% of the total projects planned in China, with annual growth of 3% in projects and 4% in rooms. In addition, 390 projects with 70,520 rooms are expected to be launched in the next 12 months, representing growth of 9% and 10% respectively, with annual growth of 4% in the early planning stages. The quarter ended with 682 projects and 130,715 rooms.
In the second quarter alone, 219 projects with 37,261 rooms were launched in China, representing a significant year-on-year increase of 37% in the number of projects and 32% in the number of rooms. In addition, 264 new projects with 43,301 rooms were announced, representing a year-on-year increase of 12%. Renovation and reconstruction projects also reached new highs, with a total of 206 projects with 42,084 rooms launched, representing a year-on-year increase of 32% in the number of projects and 47% in the number of rooms.
Three chain sizes lead China’s overall pipeline with 69% of projects and 65% of rooms. The upper mid-range segment alone accounted for 32% of all projects and set records this quarter with 1,227 projects and 190,268 rooms. The upscale chain size also reached new milestones with 979 projects and 219,104 rooms. The mid-range segment closed the quarter with 437 projects and 43,206 rooms.
The leading cities in the pipeline in the second quarter include Chengdu with 147 projects/29,951 rooms, followed by Shanghai with 126 projects/24,340 rooms, Guangzhou with 122 projects/24,977 rooms, Hangzhou with 103 projects/20,997 rooms and Xi’an with 87 projects/15,813 rooms.
In the first half of 2024, 341 new hotels with 47,084 rooms were opened in China. Forecasts for the second half of the year include the opening of 596 new hotels with 92,589 rooms. By the end of 2024, 937 new hotels with 139,673 rooms are expected to open. For 2025, forecasts are for 994 new hotels with 166,683 rooms, and in 2026, 759 new hotels with 146,894 rooms are expected.
