APEC’s hotel sector hits new highs in 2024, with Vietnam, Indonesia, and India driving record-breaking growth in project pipelines and openings.
The hotel development industry across the Asia-Pacific region, excluding China, has seen substantial growth through the third quarter of 2024.
As of Q3’s conclusion, the project pipeline reached 2,072 hotel projects and 410,863 rooms, showing year-over-year (YOY) growth of 7% in projects and 3% in room counts.
Unprecedented Growth in Hotel Development
At the close of Q3, there were 848 hotel projects under active construction, translating to 197,576 rooms being built.Moreover, there are 354 projects planned for the next 12 months, which will add a total of 64,571 rooms.
The early planning phase has reached a new record, with 870 projects and 148,716 rooms—a significant increase of 28% in projects and 18% in rooms from last year.
This rapid expansion signals a promising outlook for hotel development across the region, fueled by rising demand and robust investment.
Pipeline Dominated by Upper Chain Scales
Upper upscale, upscale, and upper midscale segments are leading the development pipeline, comprising 61% of the projects and 64% of the rooms. The upscale sector has particularly surged, reaching an all-time high of 510 projects with 101,067 rooms. The upper midscale segment follows closely, with 388 projects and 79,773 rooms, while upper upscale accounts for 372 projects with 82,130 rooms.
The luxury hotel category has also seen notable growth, achieving record numbers in both project counts and room capacities.
Regional Leaders in Development
India stands out as the leading country within the APEC region, with 641 projects and 79,648 rooms as of Q3, representing 31% of projects and 19% of rooms in the pipeline.
Other prominent contributors include Vietnam, with 252 projects and 88,489 rooms, and Indonesia, which has 179 projects and 31,801 rooms in progress.
Thailand and Japan also play significant roles, reporting 161 projects with 40,770 rooms and 150 projects with 27,461 rooms, respectively.
Cities like Bangkok, Jakarta, Melbourne, Phuket, and Kuala Lumpur are key urban centers for development, with Bangkok alone having 69 projects and 15,960 rooms underway.
Ongoing Hotel Openings
During the third quarter of 2024, a total of 66 new hotels were launched across the region, contributing an additional 11,524 rooms.
Looking ahead, LE analysts predict 135 more hotel openings, totaling 26,848 rooms by year-end. This will bring 2024’s cumulative openings to 339 hotels and 63,331 rooms.
Strong Future Pipeline
Projections indicate continued growth with 339 new hotels and 72,518 rooms expected to open in 2025, followed by 337 hotels with 65,668 rooms in 2026.
These figures underscore a strong growth path, reflecting developers’ confidence in the region’s long-term potential. With this momentum, the APEC region is positioned to maintain its status as a global leader in hotel development for years to come.
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