China’s hotel construction pipeline hits record number of projects and rooms in Q1 2022

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China has 2,623 projects/477,245 rooms currently under construction, both at record highs and up 11% and 12% year-on-year, respectively.

Portsmouth, NH – According to the latest Construction Pipeline Trends Report from Housing econometrics (LE), at the end of Q1 22, China’s total hotel construction pipeline reached a record number of projects and rooms, amounting to 3,711 projects/704,101 rooms and up 8% by projects and 7% per room year-over-year (YOY) .

China has 2,623 projects/477,245 rooms currently under construction, both at record highs and up 11% and 12% year-on-year, respectively. Projects scheduled for construction in the next 12 months total 504 projects/96,054 rooms. Early planning stage projects and rooms are up 26% and 17% YoY, respectively, and stand at 584 projects/130,802 rooms at the end of Q1 2022.

Despite the impact of COVID-19 on the country’s accommodation industry, construction growth remains steady in China. The record number of projects and rooms seen in the first quarter can be attributed to the large number of hotel projects coming back online following previous construction postponements. In addition, high-end, high-end and upper-mid-end projects in the country’s pipeline reached record totals this quarter. As cities across China ease COVID-19-related lockdowns, domestic leisure and business travel is steadily increasing, and booking and occupancy rates are rising. This growing demand is expected to continue throughout 2022.

In the first quarter of 2022, Chengdu leads the Chinese pipeline with 143 projects/29,276 rooms. Next comes Shanghai with 123 projects/23,617 rooms, followed by Guangzhou with 118 projects/24,372 rooms. Next, Hangzhou with 100 projects/21,069 rooms and Wuhan with 94 projects/12,887 rooms.

The franchise companies leading the construction pipeline in China are Hilton Worldwide, which hits a record number of projects, with 675 projects/123,855 rooms, InterContinental Hotels Group (IHG) with 443 projects/91,569 rooms and Marriott International with 393 projects. /104,785 rooms. Next come Accor with 201 projects/36,909 rooms and Jin Jiang Holdings with 187 projects/18,529 rooms.

The top construction pipeline brands for each of these companies in Q122 in China are Hilton Worldwide’s Hampton by Hilton brands with 355 projects/53,254 rooms and its record high Hilton Garden Inn brand with 94 projects/18,835 rooms. IHG’s top brands in China’s hotel construction pipeline are Holiday Inn Express, with 197 projects/32,814 rooms and Holiday Inn, with 71 projects/17,296 rooms. Marriott International’s brands with the most projects under construction are its Marriott Hotel brand with 67 projects/20,004 rooms and its Four Points Hotel brand with 65 projects/17,627 rooms. Accor’s main brands in the construction pipeline, in Q1 22, are its Ibis brands with 61 projects/6,398 rooms and the Mercure Hotel brand with 53 projects/8,813 rooms. The leading brands in Jin Jiang International’s construction pipeline are 7 Days Inn with 94 projects/7,370 rooms, followed by Vienna Hotel with 39 projects/4,022 rooms.

In the first quarter, China opened 57 new hotels/8,949 rooms. LE forecasts the opening of 817 new hotels with 124,951 rooms for the whole of 2022, while in 2023, 893 new hotels with 142,285 rooms are expected to open.


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