U.S. and China Account for 64% of Worldwide Hotel Projects in the Pipeline at Q2 2024

Lodging Econometrics’ (LE’s) Q2 2024 Global Construction Pipeline Trend Report states that the total pipeline ascended to a record-high 15,453 projects with 2,395,726 rooms, up 6% by projects year-over-year (YOY) and 4% by rooms.

Worldwide, at the close of the second quarter, there are 6,265 projects/1,115,989 rooms under construction, up 2% by projects and 1% by rooms YOY. Projects and rooms scheduled to start construction in the next 12 months grew 8% YOY to close the quarter at 3,972 projects/545,764 rooms. Projects in the early planning stage continue to grow, with a 10% increase in projects and a 6% increase in rooms, YOY, standing at 5,216 projects/733,973 rooms.

Upper midscale, upscale, and the midscale chain scales dominate the pipeline at Q2, accounting for 65% of the projects in the total pipeline. Of that 65%, upper midscale hotel projects comprise 29% of the projects in the total global pipeline with a record 4,540 projects and 585,688 rooms. Upscale projects and rooms also achieved record-highs at Q2, with 3,688 projects/634,050 rooms, while midscale hotel projects increased 5% YOY to close the quarter at 1,868 projects/186,592 rooms. Luxury projects and room counts also reached record-high counts at Q2; a 13% YOY increase in projects and a 14% YOY increase in rooms, to stand at 1,066 projects/214,270 rooms.

At Q2, the top countries by project count are the United States, closing the quarter at a record 6,095 projects with 713,151 rooms, and China, also reaching record-high project counts of 3,815 projects with 699,786 rooms. The U.S. accounts for 39% of the projects in the global pipeline while China accounts for 25%, resulting in 64% of the global pipeline being concentrated within just two countries. Distantly following is India standing at a record-high 610 projects with 75,280 rooms, Canada with record-highs of 322 projects and 40,297 rooms, and Saudi Arabia, also reaching record-highs at Q2, with 320 projects and 79,756 rooms.

Around the world, the cities with the largest pipelines by project counts are Dallas, TX with 189 projects and a record-high 22,392 rooms, Atlanta, GA with a record-high of 159 projects with 18,522 rooms, and Chengdu, China with 147 projects/26,951 rooms. Shanghai, China, follows with 126 projects/24,340 rooms, and then California’s Inland Empire, setting a new record with 124 projects and 12,569 rooms.

The first half of 2024 saw 948 new hotels/135,579 rooms open around the world with an additional 1,586 new hotels/237,107 rooms scheduled to open by year-end. LE analysts forecast a total of 2,534 new hotels with 372,686 rooms to open in 2024. With the global pipeline projects at an all-time high, LE forecasts that new hotel openings will continue to climb with 2,756 new hotels/429,120 rooms expected to open in 2025. For 2026, LE analysts forecast 2,812 new hotels/430,355 rooms to open worldwide.