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 projects and 214,270 rooms.
The United States and China lead in project counts, holding 39% and 25% of the global pipeline, respectively. This amounts to a combined 64% of all projects concentrated in these two nations. The U.
S. ended the quarter with a record 6,095 projects and 713,151 rooms, while China reported a record 3,815 projects and 699,786 rooms. India, Canada, and Saudi Arabia also reported record numbers, with substantial project and room counts.
Cities like Dallas, Atlanta, and Chengdu are at the forefront in terms of project counts, with Dallas leading with 189 projects and 22,392 rooms. Atlanta follows with 159 projects and 18,522 rooms, and Chengdu with 147 projects and 26,951 rooms. In the first half of 2024, the world saw the opening of 948 new hotels encompassing 135,579 rooms, with another 1,586 hotels expected to open by the end of the year.
Projections for 2025 and 2026 remain robust, with 2,756 and 2,812 new hotels anticipated to open, respectively, highlighting a continuous upward trend in new hotel developments..
