Key points
- The Asia Pacific Excluding China (APEC) region is experiencing a significant surge in hotel development, with the latest data showing a steady rise in both project count and room capacity.
- The period saw 115 projects and 19,855 rooms breaking ground, amounting to a massive 55% increase in project count and a 70% rise in rooms compared to the same period last year.
- India leads the APEC region in hotel development with an all-time high of 693 projects and 88,884 rooms — a staggering 19% jump in project numbers and a 27% increase in room count.
Hotel News: Strong Growth in APEC Hotel Pipeline Signals Industry Resurgence
The Asia Pacific Excluding China (APEC) region is experiencing a significant surge in hotel development, with the latest data showing a steady rise in both project count and room capacity. According to Lodging Econometrics’ Q1 2025 Hotel Construction Pipeline Trend Report, the total hotel construction pipeline across the APEC region reached 2,074 projects encompassing 408,213 rooms. This represents a year-on-year increase of 3% in total projects and a 1% growth in rooms, underscoring a growing confidence in the regional hospitality sector.
The total hotel construction pipeline across the APEC region for 2025 reached 2,074 projects encompassing 408,213 rooms.
Image Credit: Lodging Econometrics
This Hotel News report highlights that the region’s recovery momentum, combined with strategic tourism campaigns and renewed investor optimism, is propelling development in both mature markets and emerging destinations. The construction boom is not just a rebound from pandemic-era stagnation but a forward-looking move to accommodate surging traveler demand, especially in lifestyle, upper-upscale, and business-centric hotel offerings.
Robust Construction Activity Across Multiple Stages
At the end of the first quarter, 872 projects with 198,640 rooms were under active construction, reflecting a 1% increase from the previous year. Projects scheduled to begin construction within the next 12 months stood at 328, covering 66,559 rooms. What’s especially notable is the early planning phase, which now boasts a record-high of 874 projects and 143,014 rooms. This marks a 7% jump in the number of projects and a 3% increase in room count year over year.
The surge in early-stage planning is an indicator of long-term confidence in the region’s travel and tourism landscape. Developers are clearly betting on a sustained upswing in hospitality demand over the coming years.
Upscale and Upper Upscale Segments Lead the Charge
The trend report places a spotlight on the upscale chain scale segment, which now includes 519 projects with 103,815 rooms — a 9% increase year over year. The upper upscale segment follows with 388 projects and 83,070 rooms, representing a 4% uptick in project numbers and a 2% rise in rooms. Together, these two categories make up 44% of all projects and 46% of the total room count in the APEC hotel pipeline. Their dominance reflects the growing preference for higher-quality, experience-driven stays across Asia Pacific markets.
Spikes in New Construction and Brand Transitions
A notable highlight from Q1 2025 is the impressive rise in construction starts. The period saw 115 projects and 19,855 rooms breaking ground, amounting to a massive 55% increase in project count and a 70% rise in rooms compared to the same period last year. Additionally, the APEC region recorded 124 new project announcements totaling 20,181 rooms. Renovations and brand conversions also remained active, with 211 projects covering 43,230 rooms, indicating that hotel operators are investing not just in new builds but also in refreshing and rebranding existing assets.
India and Thailand Dominate Country and City Rankings
India leads the APEC region in hotel development with an all-time high of 693 projects and 88,884 rooms — a staggering 19% jump in project numbers and a 27% increase in room count. Trailing behind are Vietnam, Thailand, Indonesia, and Japan, all showing vibrant activity in the pipeline.
Among cities, Bangkok tops the list with 71 active projects comprising 17,531 rooms. Jakarta, Phuket, Melbourne, and Bengaluru follow closely, making Southeast Asia and Australia prominent zones of development focus. Thailand’s prominence with two cities in the top five signals strong investor trust in its post-pandemic tourism recovery.
New Openings and Forward-Looking Forecasts
During Q1 2025, the APEC region welcomed 65 newly opened hotels featuring 11,151 rooms. Looking ahead, 296 more hotels with 58,972 rooms are projected to open within the year, with another 361 hotels totaling 70,123 rooms expected by year-end. The forecast for 2026 remains equally bullish, with plans to launch 311 new hotels comprising 63,544 rooms across the region.
These figures reinforce the region’s commitment to expanding capacity to match future tourism flows, event-driven travel, and rising intra-Asia mobility.
The upward trajectory of the APEC hotel construction pipeline paints a promising picture for the industry. Developers are not only recovering lost ground but are aggressively expanding into high-demand segments and destinations. With Bangkok and Phuket emerging as key hubs and India breaking new records, stakeholders can expect fierce competition, brand diversification, and exciting innovations in guest experiences. The sustained momentum in both upscale and upper-upscale developments also hints at evolving consumer expectations, where comfort, design, and curated service are becoming standard.
The Lodging Econometrics’ Q1 2025 Hotel Construction Pipeline Trend Report can be purchased from here:
For the latest news on Hotel Pipelines in the Asia Pacific region, keep on logging to Bangkok Hotel News.
