China’s Hotel Construction Pipeline Sees Record-High Brand Conversion Activity, Upscale and Upper Midscale Chain Scales Drive Growth at Q4 Close
China's Q4 2025 pipeline totals 3,608 projects with brand conversions hitting record highs, while upscale and upper midscale segments drive 64% of development activity.
According to the latest China Construction Pipeline Trend Report from Lodging Econometrics (LE), China’s total hotel construction pipeline stands at 3,608 projects/644,938 rooms at the close of the fourth quarter of 2025.
Hotel projects currently under construction in China stand at 2,592 projects/458,734 rooms, while projects scheduled to start construction sometime within the next 12 months stand at 366 projects/62,119 rooms, up 3% by projects year-over-year (YOY). Projects in the early planning stage total 650 projects/124,085 rooms at Q425.
The upper midscale chain scale remains the preferred chain scale for development at Q425 close with 1,226 projects/182,937 rooms, up 2% by projects YOY and accounting for 34% of the projects in China’s total pipeline. The upscale chain scale continues its strong performance, increasing 5% by projects and 1% by rooms YOY to stand at 1,066 projects/221,714 rooms, representing 30% of the country’s pipeline. Together, these two chain scales account for 64% of all projects in China’s pipeline, with a combined total of 2,292 projects/404,651 rooms, up 7% by projects and 1% by rooms YOY.
Notably, brand conversions reached a new record-high in both project and room counts at Q425, and hotel renovations and brand conversions combined also achieved a record-high total, standing at 265 projects/48,983 rooms, representing a significant 36% increase in projects and a 25% increase in rooms YOY.
At the close of 2025’s fourth quarter, Chengdu continues to lead China’s hotel construction pipeline with 136 projects/24,216 rooms. Guangzhou follows with 126 projects/25,329 rooms, showing steady growth of 5% by both projects and rooms YOY. Shanghai ranks third with 107 projects/20,203 rooms, then Hangzhou with 100 projects/18,418 rooms, and Xi’an with 83 projects/14,777 rooms.
China saw robust hotel openings throughout 2025, with 970 new hotels accounting for 141,236 rooms opening during the year. Looking ahead, LE forecasts 957 new hotels/147,474 rooms anticipated to open in 2026, followed by 821 new hotels/139,038 rooms projected to open in 2027.