China’s hotel construction pipeline reached unprecedented heights in the third quarter of 2024, setting new records in both projects and rooms. According to the Q3 2024 China Hotel Construction Pipeline Report from Lodging Econometrics (LE), the country concluded the quarter with a staggering 3,853 projects encompassing 703,312 rooms, representing a 4% increase in projects and a 3% rise in rooms compared to the previous year.
This remarkable growth was driven by a surge in upscale and upper-midscale hotel projects. The upscale category ended Q3 with 1,026 projects and 224,688 rooms, reflecting a substantial 14% increase in projects and a 9% rise in room count year-over-year. The upper-midscale sector mirrored this trend, reporting 1,230 projects with 188,280 rooms, up 7% in projects and 4% in rooms compared to the previous year. Together, these two segments constitute a significant 59% of China’s hotel construction pipeline in both projects and rooms.
The report also highlighted a significant boost in conversions, with brand conversions increasing by 12% in projects and 20% in rooms, totaling 174 hotels with 29,893 rooms. This indicates a growing trend of existing hotels adopting new brands and upgrading their offerings. Construction starts also gained momentum in Q3, with an 8% increase in projects and a 10% rise in rooms, ending the quarter at 241 projects and 39,138 rooms.
China’s largest hotel construction pipelines are concentrated in key cities, with the following leading the way:
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Shanghai:
381 projects, 69,118 rooms*
Beijing:
318 projects, 54,792 rooms*
Guangzhou:
182 projects, 34,896 rooms*
Shenzhen:
178 projects, 33,638 rooms*
Chengdu:
156 projects, 29,890 roomsIn addition to the robust construction pipeline, China also witnessed a surge in hotel openings in Q3 2024. The country welcomed 662 new hotels with a combined 91,463 rooms during the quarter. LE projects an additional 326 hotels with 53,654 rooms to open in Q4, bringing the 2024 year-end forecast to 988 new hotels and 145,117 rooms.
Looking ahead, LE analysts predict an even stronger surge in new hotel openings in 2025, with 1,101 hotels and 176,140 rooms expected to open their doors. For 2026, another 799 hotels, comprising 150,069 rooms, are anticipated to open across China, further solidifying the country’s position as a major player in the global hospitality industry.
This record-breaking hotel construction activity reflects the strong growth of China’s economy, particularly in the tourism and hospitality sectors. As the country continues to invest in infrastructure and expand its tourism offerings, the hotel industry is poised for sustained growth and development in the coming years.
