Wednesday, August 21, 2024 The U.S. and China dominate global hotel construction, accounting for 64% of projects worldwide as of Q2 2024, reflecting a booming industry in these key markets.
According to the Q2 2024 Global Construction Pipeline Trend Report by Lodging Econometrics, the global hotel project pipeline has reached an unprecedented peak of 15,453 projects, encompassing 2,395,726 rooms. This represents a 6% increase in projects and a 4% rise in rooms compared to the previous year. As of the end of the second quarter, 6,265 hotel projects with 1,115,989 rooms are actively under construction, marking a 2% increase in projects and a 1% rise in rooms year-over-year.
The number of projects slated to commence within the next 12 months surged by 8% to 3,972 projects housing 545,764 rooms. Early planning stages saw a 10% rise in projects and a 6% increase in rooms, totaling 5,216 projects and 733,973 rooms. The pipeline is predominantly filled with upper midscale, upscale, and midscale hotels, which together account for 65% of all projects.
Specifically, upper midscale hotels represent 29% of this total, featuring a record 4,540 projects and 585,688 rooms. Upscale hotels also reached new heights with 3,688 projects and 634,050 rooms, while midscale projects saw a 5% annual increase, concluding the quarter with 1,868 projects and 186,592 rooms. Luxury hotels, too, experienced a boom, with project and room counts increasing by 13% and 14% respectively, leading to 1,066 projec.