APAC | Momentum across the APAC region has been noticeable, especially in the hotel market, as outlined by recent research.
Hotel construction across the APAC region has hit a record 2,056 projects in the market pipeline, according to the latest data from Lodging Econometrics.
The market has a total of 406, 118 rooms either in the planning stages or under construction. This has market a six percent increase in projects and one percent rise in room build.
Currently, 864 projects with 199,784 rooms are under construction in the APEC region. Projects scheduled to start construction in the next 12 months have risen to 358 with 65,853 rooms, up 23 percent by projects and rooms YOY. Projects and rooms in the early planning stage have soared to a record-high 834 projects with 140,481 rooms, representing a 19 percent YOY increase in projects and six percent in rooms.
The upper upscale, upscale, and upper-midscale chain scales dominate the pipeline, accounting for 62 percent of projects and 65 percent of rooms. Both the upper upscale and upscale chain scales hit record-high project and room counts at the end of Q2 24. The upscale segment leads with 507 projects and 100,524 rooms, while upper midscale and upper upscale stand at 390 projects with 78,452 rooms and 380 projects with 83,811 rooms, respectively. Notably, renovation and conversion projects in the APEC region have also reached an all-time high of 305 projects with 51,909 rooms in the second quarter.
Countries with the most projects in the APEC construction pipeline at Q2 are led by India with a record-high 610 projects with 75,280 rooms and accounting for 30 percent of the projects in the total APEC pipeline. Following at a distance are Vietnam with 247 projects and 85,760 rooms, Indonesia with 181 projects with 31,550 rooms, Thailand with 163 projects with 38,350 rooms, and Japan with 162 projects and 30,122 rooms.
At Q2, APEC cities with the largest project counts are led by Bangkok, with 67 projects with 15,394 rooms, Jakarta with 42 projects percent 8,979 rooms, and Melbourne with 40 projects with 7,496 rooms. Phuket follows with 36 projects and 9,050 rooms, and Sydney with 31 projects and 5,225 rooms.
In Q2 2024, 62 projects and 12,721 rooms started construction, and 142 new projects and 23,541 rooms were announced into the region’s pipeline.
Fifty-seven new hotels, with 9,214 rooms, opened in the APEC region during the second quarter, totalling 131 new hotels, with 23,316 rooms opened in the first half of 2024. Lodging Econometrics forecasts an additional 228 new hotels to open throughout Q3-Q4, bringing the total year-end 2024 openings to 359 new hotels with 69,861 rooms.
Lodging Econometrics analysts forecast India to dominate the APEC region’s new hotel openings forecast over the coming years, claiming 25 percent of total openings in 2024 and leading with the largest number of new opens through year-end 2026.
Looking ahead to 2025, Lodging Econometrics analysts anticipate 323 new hotels with 66,523 rooms to open in the APAC region. Lodging Econometric’s newly released forecast for 2026 New Hotel Openings expects 341 new hotels with 65,617 rooms throughout the APEC region.
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