Industry Update
Press Release18 August 2020

At the 2020 second quarter close, the Asia Pacific Hotel Construction Pipeline, excluding China, shows continued growth*

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Lodging Econometrics

According to the recent Asia Pacific, excluding China, Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE), Asia Pacific's total construction pipeline, excluding China, grew to 1,906 projects/404,520 rooms, up 6% and 3% respectively, year-over-year (YOY).

The region currently has 996 projects, a cyclical peak for the region, and 225,734 rooms under construction. There are 415 projects with 82,122 rooms scheduled to start construction in the next 12 months, and 495 projects/96,664 rooms in the early planning stage, up a remarkable 19% by projects and 12% by rooms YOY. Additionally, during the second quarter of 2020, the Asia Pacific region, excluding China, saw 39 new hotels accounting for 8,863 rooms open.

Countries with the largest pipelines in Asia Pacific, excluding China, are led by Indonesia, with 345 projects/56,373 rooms. Next is India with 263 projects/35,839 rooms, and Japan with 243 projects/46,852 rooms. These three countries account for 45% of the projects in the Asia Pacific, excluding China, total pipeline. Australia follows with 179 projects/33,672 rooms and then Vietnam with 157 projects/62,085 rooms.

Asia Pacific cities with the largest construction pipelines are led by Jakarta, Indonesia with 78 projects/13,508 rooms. Next is Seoul, South Korea with 67 projects/13,233 rooms and Tokyo, Japan with 59 projects/14,216 rooms. Kuala Lumpur, Malaysia follows with 50 projects/13,325 rooms and Bangkok, Thailand with 50 projects/12,711 rooms.

The top four franchise companies in the region are: Marriott International, at an all-time high, with 294 projects/63,558 rooms; AccorHotels with 214 projects/45,407 rooms; InterContinental Hotels Group (IHG) at 160 projects/33,721 rooms; and Hilton Worldwide, also at an all-time high, with 99 projects/22,797 rooms.

Top brands in Asia Pacific's construction pipeline, excluding China, are Marriott International's Fairfield Inn at 51 projects/7,495 rooms and Courtyard at 40 projects/8,295 rooms, both at record highs by project count. AccorHotels' Ibis brands have 46 projects/9,080 rooms and Novotel has 41 projects/9,973 rooms. IHG's top brands are Holiday Inn with 58 projects having 12,100 rooms and Holiday Inn Express with 30 projects/6,063 rooms. This is followed closely by IHG's InterContinental Hotels, having record high counts, with 21 projects/4,986 rooms. Hilton Worldwide's top brands include Hilton Hotel & Resort, at a record high, with 34 projects/9,464 rooms and DoubleTree by Hilton with 32 projects/6,446 rooms. Additionally, Hilton's Garden Inn brand has hit a record high this quarter with 22 projects/4,560 rooms.

Asia Pacific was one of the first regions of the world to successfully control the spread of COVID-19. This allowed for hotel construction to gradually restart at the end of April, causing only slight delays to project timelines. While the region has begun to see a resurgence of COVID-19 in some areas, it has not had a significant impact on hotel development and most developers are optimistic that projects will continue as planned.

*COVID-19 (coronavirus) has had an unprecedented impact on the world and the hospitality industry. LE's market intelligence department has and will continue to gather global hotel intelligence on the supply side of the lodging industry and make that information available to our subscribers. It is still early to predict the full impact the pandemic will have on the lodging industry. We will have more information to report in the coming months.

About Lodging Econometrics (LE)

Lodging Econometrics is the leading provider of global hotel intelligence. Combining unparalleled industry experience, a real-time pulse on market trends and extensive knowledge of key decision-makers, LE delivers actionable business development programs for hotel franchise companies looking to accelerate their brand growth, hotel ownership and management companies seeking to expand their real estate portfolios, and lodging industry vendors wanting to increase their sales. LE's programs turn a client's business goals into opportunities that advances their competitive advantage.

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