APEC Hotel Construction Soars to Record High in Q4 2024, Fueled by India, Vietnam, and Thailand

The latest Construction Pipeline Trend Report from Lodging Econometrics (LE) reveals that hotel development in the Asia Pacific, excluding China (APEC), reached an all-time high by the close of Q4 2024, marking a 5% year-over-year (YOY) increase. The region’s hotel construction pipeline set a new record, standing at 2,085 projects comprising 412,358 rooms.

At the quarter’s end, 41% of the total pipeline was under construction, equating to 848 projects and 196,408 rooms (47% of the pipeline’s total room count). Projects expected to break ground within the next 12 months saw a 7% YOY rise, reaching 367 projects with 67,617 rooms. Meanwhile, the early planning stage experienced a remarkable 22% YOY surge, setting a new record with 870 projects and 148,333 rooms.

Growth Led by Higher-End Chain Scales

Higher-end brands continue to drive APEC’s pipeline growth. Upscale projects reached a historic peak in room count, surging 16% YOY to 517 projects with 102,909 rooms. Upper midscale projects also expanded, totaling 376 projects and 77,174 rooms. Additionally, upper upscale projects saw a moderate YOY increase, closing Q4 with 368 projects and 80,095 rooms. Collectively, these three chain scales dominate the region’s pipeline, accounting for 1,261 projects and 260,178 rooms, which represent 60% of total projects and 63% of total rooms.

Key Markets Driving Development

Among countries, India leads the pipeline, setting new records with 693 projects and 87,512 rooms, reflecting a 35% YOY increase in projects and 43% YOY rise in rooms. Vietnam follows with 251 projects and 90,245 rooms, while Indonesia ranks third with 174 projects and 31,193 rooms. Thailand holds fourth place, boasting an all-time high in room count at 43,381 rooms across 168 projects, with Japan completing the top five with 163 projects and 28,762 rooms.

Among cities, Bangkok, Thailand leads the way with 68 projects and 16,641 rooms, followed by Jakarta, Indonesia with 45 projects and 10,199 rooms. Phuket, Thailand comes next with 40 projects and 10,194 rooms, while Melbourne, Australia (36 projects/6,851 rooms) and Bengaluru, India (31 projects/5,935 rooms) round out the top five.

Hotel Openings & Future Projections

In 2024, the region welcomed 291 new hotels with 55,852 rooms, including 72 hotel openings and 16,234 rooms in the fourth quarter alone. Looking ahead, LE analysts project 359 new hotels with 73,505 rooms to open in 2025, followed by 337 hotels with 66,213 rooms in 2026.