Industry Update
Press Release19 November 2020

China's Hotel Construction Pipeline Continues to Remain Robust at the Q3 2020 Close

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Lodging Econometrics

According to the latest China Construction Pipeline Trend Report, analysts at Lodging Econometrics (LE) report that China's total hotel construction pipeline remains robust at 3,409 projects/634,119 rooms, up 1% by projects and rooms year-over-year (YOY). These project and room counts are, however, down slightly over peak Q2 '20 totals, which were the highest seen in China during this lodging real estate development cycle.

There are currently 2,208 projects/405,530 rooms under construction in China, down YOY 13% by projects and 8% by rooms. Like last quarter, projects scheduled to start construction in the next 12 months experienced another quarter of substantial YOY increases of 85% by projects and 44% by rooms, to stand at 746 projects/122,014 rooms. These YOY highs in the starts next 12 month stage are attributed to a record number of pipeline projects within the upscale, upper midscale, and midscale chain scales. Projects in the early planning stage stand at 455 projects/106,575 rooms, up 6% by projects and 1% by rooms YOY. In the third quarter of 2020, China opened 185 new hotels totaling 23,605 rooms.

Guangzhou leads China's pipeline with 137 projects/26,615 rooms. Chengdu follows with 131 projects/26,064 rooms. Next is Shanghai at 125 projects/23,296 rooms, then, Wuhan with 101 projects/13,899 rooms and Xi'an with 95 projects/16,882 rooms.

Franchise companies topping China's construction pipeline are Hilton Worldwide with record totals of 535 projects/107,848 rooms, InterContinental Hotels Group (IHG), also recording all-time high project and record counts with 424 projects/90,906 rooms, and Marriott International with 336 projects/90,333 rooms. Next is JinJiang Holdings with 250 projects/25,127 rooms and AccorHotels with 201 projects/34,655 rooms.

Hilton Worldwide's top brands are Hampton by Hilton, at an all-time high, with 325 projects/50,100 rooms. Hilton's second-largest brand, also at an all-time high, is Hilton Garden Inn with 68 projects/15,653 rooms. IHG's leading brand in China is Holiday Inn Express, at a record count, with 205 projects/34,785 rooms and then Holiday Inn, with a record number, at 69 projects/17,184 rooms. Marriott International's top brands are Marriott Hotel & Resorts with 67 projects/20,150 rooms and Fairfield Inn with 47 projects/7,219 rooms. Another noteworthy brand for Marriott is Four Points Hotel, which is at a peak for projects and rooms count in China with 37 projects/11,048 rooms. Leading brands for JinJiang Holdings are 7 Days Inn with 106 projects/8,341 rooms followed by Vienna Hotel with 75 projects/7,394 rooms. AccorHotels' leading brands are the Ibis brands with 79 projects/8,341 rooms, and Mercure Hotel with 57 projects/9,407 rooms.

According to research by LE's market intelligence team, hotel construction projects in most major cities have resumed as the country continues to maintain control of COVID-19.

*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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