Global hotel construction pipeline hits new all-time high, says Lodging Econometrics

2.36 million rooms in pipeline in Q4 2023
/ New Delhi
/ Hotels
Global hotel construction pipeline hits new all-time high, says Lodging Econometrics

Hotel construction business is flourishing around the world

Global hotel construction has accelerated to a new record high with over 2.36 million rooms under construction, as tourism revival is set to surpass the pre-pandemic level globally in 2024, says a report by Lodging Econometrics.
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At the end of 2023, global tourism industry had come close to matching its record high levels of 2019 and with the future looking bright, the pace of global hotel construction has accelerated to a new high, says a report by Lodging Econometrics, a hotel construction tracking agency.

According to the Q4 2023 Global Hotel Construction Pipeline Trend Report at the close of 2023, the total global construction pipeline stands at 15,196 projects with 2.37 million rooms, reflecting a 7 pc increase in projects and a 3 pc increase in rooms year-over-year (YOY). The report adds that there are 6,160 projects with 1.09 million rooms currently under construction worldwide at Q423, for a 2 pc increase by projects YOY. Projects scheduled to start construction in the next 12 months stand at 3,850 projects with 536,588 rooms, for a 7 pc increase by projects and a 5 pc increase by rooms YOY. Projects and rooms in the early planning stage are at all-time highs and stand at 5,186 projects with 734,391 rooms, increasing 12 pc and 6 pc YOY, respectively.

The top countries by project count are led by the United States, with an all-time high by projects of 5,964 projects with 693,963 rooms. Following the United States is China, reaching an all-time high of 3,788 projects with 691,772 rooms. At Q4, the United States represents 39 pc of the projects in the total global pipeline, while China accounts for 25 pc of the projects in the total pipeline, resulting in 64 pc of all global projects in just these two countries.

Distantly following is India at 514 projects with 61,075 rooms, the United Kingdom with 322 projects and 43,990 rooms, and Saudi Arabia with 300 projects and 72,761 rooms. Three of the five cities with the largest construction pipeline totals are located in the United States at Q4. These include Dallas in Texas with 193 projects and 22,291 rooms, Atlanta in Georgia, with 151 projects and 18,730 rooms, and Nashville in Tennessee, with 123 projects and 16,148 rooms. Chengdu, China, also ranks among the top five cities with 148 projects and 29,575 rooms. The provincial cities in Saudi Arabia follow with 133 projects and 28,656 rooms.

Globally, during 2023, 1,978 new hotels opened, accounting for 292,380 rooms. Of these, 636 hotels and 94,559 rooms opened in the fourth quarter. LE analysts forecast, for 2024, an additional 2,550 new hotels with 389,799 rooms to open by year-end and another 2,804 new hotels and 430,546 rooms to open in 2025.

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