Asia Pacific hotel pipeline expands with record upscale projects

Mohamed Dabo

Wed, May 14, 2025, 1:22 AM 3 min read

The Asia Pacific (APEC) region, excluding China, has seen notable growth in hotel construction projects during the first quarter of 2025, according to the latest data from Lodging Econometrics (LE).

The total pipeline in the region has reached 2,074 projects, encompassing 408,213 rooms, marking a 3% year-on-year (YOY) increase in projects and a 1% rise in rooms.

This steady growth indicates a strong demand for new hotel developments across APEC.

At the close of Q1 2025, there were 872 hotel projects under construction, representing 198,640 rooms.

This is a 1% YOY increase in the number of projects. Additionally, construction starts during the first quarter saw substantial growth, with 115 projects breaking ground, an increase of 55% in project count and 70% in room count compared to the previous year.

These figures reflect a growing confidence in the hospitality sector across the region.

The pipeline also includes 328 projects scheduled to begin within the next 12 months, with a total of 66,559 rooms.

The early planning stage of development reached a new record-high, with 874 projects and 143,014 rooms, marking a 7% YOY increase in projects and a 3% YOY increase in rooms.

The upscale hotel segment has been a standout in the APEC region, with a record-high number of projects and rooms.

The upscale segment reached 519 projects and 103,815 rooms, reflecting a 9% YOY increase in both project count and rooms. The upper upscale segment also saw significant growth, with 388 projects and 83,070 rooms, up 4% in project count and 2% in room count.

Together, these two segments account for nearly half of the region's total hotel pipeline, with 44% of projects and 46% of rooms.

India, Vietnam, and Thailand are leading the APEC region in terms of hotel development.

India recorded a new record-high with 693 projects and 88,884 rooms, a significant increase of 19% in projects and 27% in rooms YOY. Vietnam follows with 251 projects and 90,738 rooms, and Thailand ranks third with 170 projects and 43,730 rooms, marking a 6% rise in projects and 18% in rooms.

These three countries together represent 70% of the region's hotel pipeline.

Several cities in APEC also saw notable project growth, with Bangkok leading the way with 71 projects and 17,531 rooms, followed by Jakarta and Phuket.

Melbourne and Bengaluru also ranked highly, with Bengaluru seeing a 39% increase in project count and a 46% increase in room count YOY.