The Americas was the only region worldwide which saw a YOY surge in hotel pipeline activity at the end of the first quarter, revealed March data from CoStar.
With a total of 156,525 rooms, the U.S. has the highest volume of rooms under construction in the region.
Hotel pipeline has been muted through 2023, as per CoStar’s previous reports. With considerable volume in the planning stages, the Americas was the only region to record an increase in overall hotel pipeline activity, CoStar mentioned in its January report. Construction activity was down worldwide, except in Asia Pacific.
March 2024 (percentage change from March 2023):
Americas
- In construction: 205,998 rooms (+4.1%)
- Final planning: 296,374 rooms (+6.8%)
- Planning: 378,628 rooms (+36%)
- Total under contract: 881,000 rooms (+16.9%)
The U.S. has the highest number of rooms in construction in this region, followed by Mexico (13,335), Canada (7,603) and Brazil (5,799).
Europe
- In construction: 172,499 rooms (-6.8%)
- Final planning: 99,744 rooms (-25.3%)
- Planning: 160,404 rooms (+3.1%)
- Total under contract: 432,647 rooms (-8.8%)
With 28,500 rooms, Germany led in this region in construction activity, followed by the U.K. (28,423).
Asia Pacific
- In construction: 502,610 rooms (+5.6%)
- Final planning: 109,926 rooms (+5.6%)
- Planning: 289,041 rooms (-11%)
- Total under contract: 901,577 rooms (-0.4%)
In terms of total rooms in construction, China led in the region (with 315,145), followed by Vietnam (37,113).
Middle East & Africa
- In construction: 110,783 rooms (-7.3%)
- Final planning: 36,173 rooms (-20.9%)
- Planning: 81,316 rooms (-3.3%)
- Total under contract: 228,272 rooms (-8.5%)
A considerable portion of the region’s pipeline activity is focused on the Middle East. Saudi Arabia leads in the region (42,464) and the U.A.E. (19,046) have the highest number of rooms in construction.
By the end of Q4 2023, global hotel construction pipeline had touched a new record in terms of project counts, revealed the latest global construction pipeline trend report by Lodging Econometrics.
U.S. maintained its top position here as well, with all-time high of 5,964 projects totaling 693,963 rooms. This was followed by China (3,788 projects/691,772 rooms). While the U.S. accounted for 39% of the total projects in the global pipeline, China represented 25% of the projects. Together, these two countries represented 64% of all global projects.
These countries were followed by India (514 projects/61,075 rooms), the U.K. (322 projects/43,990 rooms) and Saudi Arabia (300 projects/72,761 rooms).
Across the world, a total of 1,978 new hotels opened, accounting for 292,380 rooms in 2023, LE mentioned in its report. This year, LE expects an additional 2,550 new hotels to open, which will add 389,799 rooms by the end of the year and 2,804 new properties totaling 430,546 rooms to open in 2025.