According to the latest China Construction Pipeline Trend Report from Lodging Econometrics (LE), Chinas total hotel construction pipeline stands at 3,440 projects/656,828 rooms at the end of Q121, down 3% by projects and up 2% by rooms year-over-year (YOY). While project counts may be down YOY, the total number of rooms in Chinas Construction Pipeline reached a cyclical peak this quarter and is the highest its been in over twelve years.
According to the latest China Construction Pipeline Trend Report from Lodging Econometrics (LE), China’s total hotel construction pipeline stands at 3,440 projects/656,828 rooms at the end of Q1’21, down 3% by projects and up 2% by rooms year-over-year (YOY). While project counts may be down YOY, the total number of rooms in China’s Construction Pipeline reached a cyclical peak this quarter and is the highest it’s been in over twelve years.
The lodging industry in China is steadily working towards recovery from the COVID-19 pandemic. The country has administered approximately 511 million vaccines, as of May 23, and while international travel is still limited and full recovery could take a long time, domestic travel has shown rapid growth in recent months. National holidays, conferences, weddings, and large celebrations have led to a boom in leisure and business travel, and the increased demand for travel accommodations is expected to continue.
During the first quarter, China opened 113 hotels/17,830 rooms. LE is forecasting a total of 901 projects/132,244 rooms to open in 2021 and 966 projects/165,666 rooms to open in 2022.
The country currently has 2,360 projects/425,516 rooms under construction, a slight increase of 1% by projects and 3% by rooms YOY. Projects scheduled to start construction in the next 12 months stand at 615 projects/119,566 rooms. Projects in the early planning stage hit a cyclical peak this quarter, standing at 465 projects, accounting for 111,746 rooms.
Chengdu reached a record high this quarter and leads the country’s hotel construction pipeline with 137 projects/28,120 rooms. Next is Shanghai with 125 projects/24,068 rooms, followed by Guangzhou with 122 projects/24,731 rooms, then Wuhan with 102 projects/13,924 rooms, and Xi’an with 92 projects/15,986 rooms.
Franchise companies topping China’s construction pipeline are Hilton Worldwide with peak totals of 601 projects/116,446 rooms. InterContinental Hotels Group (IHG) is also recording all-time high counts with 439 projects/92,738 rooms, as well as Marriott International, setting record high project and room counts with 388 projects/105,290 rooms. Next is Jin Jiang International with 234 projects/23,060 rooms and Accor with 189 projects/33,258 rooms.
Hilton Worldwide’s top brands are Hampton by Hilton, at an all-time high, with 347 projects/52,959 rooms. Hilton’s second-largest brand, also with an all-time high project count, is Hilton Garden Inn with 77 projects/16,697 rooms. IHG’s leading brand in China is Holiday Inn Express with 198 projects/32,979 rooms and then Holiday Inn, with a record number of projects and rooms, at 76 projects/18,569 rooms. Marriott International’s top brands are Marriott Hotel & Resorts with 62 projects/18,852 rooms and Four Points Hotel, at an all-time high, with 62 projects/17,300 rooms. Leading brands for Jin Jiang International are 7 Days Inn with 106 projects/8,341 rooms followed by Vienna Hotel with 56 projects/5,522 rooms. Accor’s leading brands are the Ibis brands with 74 projects/7,821 rooms and Mercure Hotel with 50 projects/8,321 rooms.
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