CHINA | The hotel construction pipeline in mainland China has reached unprecedented heights at the close of the second quarter.
According to Lodging Econometrics, the pipeline in mainland China stands at a record-high 3,815 projects with 699,786 rooms, marking a four percent increase in projects and three percent in rooms year-over-year.
According to the Q2 report, projects under construction have hit a new all-time high of 2,743 projects with 498,551 rooms, accounting for 72 percent of the projects in mainland China’s total pipeline and growing three percent by projects and four percent by rooms YOY.
Projects scheduled to start construction in the next 12 months stand at 390 projects and 70,520 rooms at Q2, up nine percent by projects and 10 percent by rooms YOY. Projects in early planning grew four percent YOY at Q2 to close the quarter at 682 projects and 130,715 rooms.
Mainland China had 219 projects and 37,261 rooms start construction in Q2. That number represents a 37 percent YOY increase by projects and a 32 percent increase by rooms. Two hundred and sixty four new projects, with 43,301 rooms, were announced into the mainland China construction pipeline during Q2, rising 12 percent YOY by projects. Combined, renovation and conversion projects reached record-high counts and stand at 206 projects and 42,084 rooms at Q2, showing a 32 percent YOY increase in projects and a 47 percent increase in rooms.
At Q2, three chain scales account for an impressive 69 percent of the projects and 65 percent of the rooms in mainland China’s total pipeline. The upper midscale segment, claiming 32 percent of the projects in the country’s total pipeline, achieved record-highs this quarter, with 1,227 projects and 190,268 rooms. Hotel construction projects in the upscale chain scale also reached new all-time highs at Q2, with 979 projects and 219,104 rooms. The midscale segment closed the quarter with 437 projects/43,206 rooms.
Chengdu leads mainland China’s pipeline at the Q2 close with 147 projects and 29,951 rooms. Shanghai follows with 126 projects/24,340 rooms. Next is Guangzhou with 122 projects and 24,977 rooms, then Hangzhou with 103 projects and 20,997 rooms, and Xi’an with 87 projects and 15,813 rooms.
During Q1-Q2 2024, 341 new hotels and 47,084 rooms opened in mainland China, with an additional 596 new hotels and 92,589 rooms forecast to open in Q3 to Q4. Lodging Econometrics analysts forecast a total of 937 new hotels and 139,673 new rooms to open by year-end 2024. An additional 759 new hotels/146,894 rooms are forecast to open in 2026.
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