Asia Pacific Continues To Drive Global Pipeline Growth - 33% Of World’s Total Pipeline Rooms Are In China & India
Powered by some of the world’s fastest growing economies, chiefly China, India, Vietnam, and Indonesia, the Asia Pacific region continues to demonstrate a quick bounce-back from the global economic crisis. Sweeping fiscal and monetary stimulus programs mitigated the impact of the recession. As a result, strong economic growth of 5% or more is expected in many Asian countries through 2013.
Recently overtaking Japan, China is now the world’s second largest economy and the primary force in driving current global lodging development growth. At the end of Q4, China had the second largest Total Pipeline of any country at 1,182 projects/323,194 rooms. For the second consecutive quarter, China led the world in Construction Starts, with 139 projects/25,498 rooms in Q4. Also, for the first time ever, the country exceeded the United States in New Project Announcements (NPAs) into the Pipeline, with 155 projects/30,191 rooms.
India’s Total Pipeline, the third largest in the world, grew for a fourth consecutive quarter to 456 projects/80,738 rooms in Q4. Like China, India’s economy is one of the fastest growing in the world, but its Pipeline totals were just 39% of China’s total projects and a distant 25% of its rooms. Most global hotel companies have a high interest in India and continue to announce growth strategies for the country, which should boost development metrics and feed Pipeline growth through mid-decade.
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