Tuesday, November 12, 2024 China’s upscale hotel development hit a record high in Q3 2024, driven by growing demand and new projects, with key cities leading the expansion. China’s hotel construction pipeline reached a new milestone in the third quarter of 2024, largely driven by developments in the upscale and upper midscale market segments, as reported by Lodging Lodging Econometrics (LE), in its latest China Hotel Construction Pipeline Trend Report, revealed the findings. The total pipeline comprises 3,853 projects and 703,312 rooms, marking an annual increase of 4% in project numbers and 3% in room count.
By the end of Q3, there were 2,793 projects with 505,106 rooms under active construction, reflecting a cyclical high with a 5% year-over-year increase. For projects anticipated to begin within the next 12 months, there were 348 projects and 60,095 rooms, showing a slight 2% decrease in projects and an 8% drop in rooms compared to the previous year. Early planning phases saw a modest 1% growth, with 712 projects and 138,111 rooms.
The upscale and upper midscale categories have driven this quarterly growth. The upscale segment ended Q3 with 1,026 projects and 224,688 rooms, reflecting a 14% rise in project volume and a 9% increase in room capacity from last year. Similarly, the upper midscale segment reported a 7% rise in projects and a 4% increase in rooms, totaling 1,230 projects and 188,280 rooms.
These two segments make up 59% of all hotel construction projects and.