Key points
- Global Hotel Pipeline Booms With One Region Falling Behind The worldwide hotel construction sector is seeing a renewed surge, with significant growth reported across most major regions—except for the Middle East and Africa, which recorded a rare downturn in activity.
- According to new data from CoStar’s June 2025 report, hotel development is on the rise globally, signaling growing investor confidence and a rebound in travel demand.
- CoStar, a global leader in property analytics and real estate information, revealed that Europe, Asia Pacific, and the Americas all posted strong or moderate gains in total rooms under contract.
Hotel News: Global Hotel Pipeline Booms With One Region Falling Behind The worldwide hotel construction sector is seeing a renewed surge, with significant growth reported across most major regions—except for the Middle East and Africa, which recorded a rare downturn in activity. According to new data from CoStar’s June 2025 report, hotel development is on the rise globally, signaling growing investor confidence and a rebound in travel demand
Title: The Asia Pacific is the region with the most number of new hotels being constructed.
Image Credit: Freepik
CoStar, a global leader in property analytics and real estate information, revealed that Europe, Asia Pacific, and the Americas all posted strong or moderate gains in total rooms under contract. This Hotel News report found that while Europe saw a 2.9 percent overall increase in pipeline activity, it was the Asia Pacific region that made the biggest waves. With 957,254 rooms under contract—a 4.2 percent rise—Asia Pacific continues to lead the hotel development race. China alone accounted for 318,327 rooms in construction, while India (40,950) and Vietnam (36,338) followed closely, underscoring the region’s strategic importance to global hotel chains.
In Europe, the UK remained at the forefront with 24,711 rooms currently under construction, just ahead of Germany’s 23,400. Notably, the continent saw a dramatic 15.4 percent increase in early-stage planning activity, a strong signal of future growth. Meanwhile, the Americas reported a more modest 1.1 percent increase in total rooms under contract, though early-stage planning rose by 6.4 percent. The U.S. still leads in regional activity with 138,922 rooms in construction, followed by Mexico, Canada, and Brazil.
However, the Middle East and Africa region tells a different story. With a 2.6 percent drop in total pipeline activity, it is the only region experiencing a decline. Construction activity fell by 5.4 percent, and final planning nosedived 34.2 percent. Saudi Arabia and the UAE remain the only bright spots in this otherwise faltering market, contributing most of the region’s construction figures.
While the global hotel pipeline shows signs of a powerful rebound, the uneven pace of recovery highlights both regional strengths and vulnerabilities. For investors and developers, understanding these shifts is crucial as hospitality markets navigate a complex landscape of economic pressures, shifting travel trends, and fierce competition.
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