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Lodging Econometrics (LE) has released a new report showing that the global hotel construction pipeline reached a record high in room counts, with a notable surge in full-service projects by the end of Q1. LE analysts revealed that the global pipeline includes 15,366 projects and 2,382,195 rooms, marking a 6% increase in projects and a 3% rise in rooms year-over-year (YOY).

At the close of Q1, there are 6,195 projects with 1,101,602 rooms under construction worldwide. Projects slated to start within the next 12 months total 3,840 projects and 528,251 rooms, reflecting an 8% increase in projects and a 5% rise in rooms YOY. Additionally, early planning stages have hit all-time highs with 5,331 projects and 752,342 rooms, up 12% and 9% YOY, respectively.

Full-service branded and unbranded projects have notably surged, dominating the Q1 pipeline. Luxury hotel projects reached new heights with 1,215 projects and 239,744 rooms, showing a 12% increase in projects and a 6% rise in rooms YOY. Upper upscale projects closed Q1 with 1,999 projects and 445,207 rooms, up 7% in projects and 5% in rooms YOY. Upscale hotel projects set a record with 4,093 projects and 711,510 rooms, up 7% in projects and 4% in rooms YOY, while casinos saw a 6% increase in projects and a 3% rise in rooms YOY, totaling 53 projects and 25,023 rooms.

The United States leads with 2,272 full-service projects and 341,854 rooms, representing 41% of the global full-service pipeline, followed by China with 1,688 projects and 414,323 rooms. India follows with 334 projects and 46,586 rooms, then Saudi Arabia with 270 projects and 62,744 rooms, and Vietnam with 186 projects and 61,426 rooms. These five countries account for 86% of the global full-service projects.

Leading cities with the largest full-service pipeline at Q1 include Chengdu, China (80 projects/21,130 rooms), Riyadh, Saudi Arabia (75 projects/15,025 rooms), Dallas, Texas (75 projects/10,434 rooms), Los Angeles, California (68 projects/13,188 rooms), and Shanghai, China (67 projects/16,569 rooms).

In Q1, 177 new full-service hotels opened globally, adding 32,611 rooms, with upscale projects accounting for over 50% of the openings. LE analysts project that upscale projects will continue to dominate new openings through 2024 and 2025. LE forecasts an additional 952 new full-service hotels with 181,148 rooms to open in the next three quarters, totaling 1,129 new hotels with 213,759 rooms by year-end 2024. For 2025, LE anticipates another 1,260 new full-service hotels with 244,275 rooms to open worldwide.

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