India hotel pipeline represents third of existing inventory

WORLDWIDE India’s hotel guestroom inventory would increase by nearly a third if the entirety of the current development pipeline comes to market, the largest percentage of any major nation market.

India has 48,636 guestrooms in the pipeline, representing 31.4% of existing inventory in the country, according to the latest STR Global construction pipeline report.

Overall, the Asia Pacific pipeline comprises 1,132 hotels totaling 283,187 guestrooms. China leads the way with 160,799 guestrooms in the pipeline, which would increase national inventory by 13.2%. Vietnam is expecting a 27.8% inventory increase with the addition of 10,447 guestrooms, while the Philippines has 7,426 guestrooms representing 21.7% of current inventory.

The pipeline remains solid in the Middle East and Africa, with 429 hotels totaling 118,338 guestrooms currently under development. Year-to-date, 17 properties comprising 4,097 guestrooms have opened in the region, with an additional 164 properties comprising 39,682 guestrooms expected to open this year, which would amount to a 6.6% increase in room supply.

The combined Caribbean and Mexico pipeline comprises 129 hotels totaling 19,593 guestrooms, with the upper-midscale and upscale segments accounting for 48.1% of the combined total. “There has been a modest increase in rooms under construction in the Caribbean/Mexico region compared to the same period last year,” says Lana Yoshii, vice president of content management at STR. “The upscale and luxury segments are reporting the highest volume of affiliated rooms under construction—2,510 rooms and 2,487 rooms, respectively. With the addition of these rooms under construction, luxury branded hotel supply will be increased by almost 11% and upscale supply will increase by 3%.”

In Central and South America, 154 hotels with 24,044 guestrooms are in the development pipeline. Brazil reports the region’s biggest in-construction pipeline, at 4,125 guestrooms, with Panama placing a distant second with 2,744 guestrooms.

Europe has 747 hotels totaling 123,882 guestrooms in its pipeline, led by Moscow, with 4,836 guestrooms. Four cities in the United Kingdom round out the top five pipeline markets in Europe: Birmingham, Manchester, Glasgow and Edinburgh.