64% of global hotel projects in the pipeline in Q2 2024 are in the US and China

According to Lodging Econometrics (LE)’s Q2 2024 Global Construction Pipeline Trend Report, the total pipeline has increased to a record 15,453 projects with 2,395,726 rooms, representing a 6% year-over-year (YOY) increase in projects and 4% in rooms.

Globally, there were 6,265 projects/1,115,989 rooms under construction at the end of the second quarter, representing a 2% increase in projects and 1% in rooms year-over-year. Projects and rooms scheduled to begin construction in the next 12 months grew 8% year-over-year, ending the quarter with 3,972 projects/545,764 rooms. Projects in early planning stages continue to grow, with a 10% increase in projects and 6% in rooms year-over-year, representing 5,216 projects/733,973 rooms.

Upper mid-range, upscale and mid-tier chains dominate the pipeline in Q2, with 65% of projects in the overall pipeline. Of that 65%, upper mid-range hotel projects account for 29% of projects in the overall global pipeline, with a record 4,540 projects and 585,688 rooms. Upper-range projects and rooms also reached record highs in Q2, with 3,688 projects/634,050 rooms, while mid-range projects increased 5% year-over-year, ending the quarter with 1,868 projects/186,592 rooms. Luxury projects and room counts also reached record highs in Q2, up 13% year-over-year in projects and 14% year-over-year in rooms, to 1,066 projects/214,270 rooms.

In the second quarter, the countries with the highest number of projects are the United States, which ended the quarter with a record 6,095 projects and 713,151 rooms, and China, which also reached a record with 3,815 projects and 699,786 rooms. The United States accounts for 39% of the projects in the global pipeline, while China accounts for 25%, meaning 64% of the global pipeline is concentrated in just two countries. Following at a considerable distance are India, with a record 610 projects and 75,280 rooms, Canada, with a record 322 projects and 40,297 rooms, and Saudi Arabia, which also reached a record in the second quarter with 320 projects and 79,756 rooms.

The cities with the largest project pipelines globally are Dallas, Texas, with 189 projects and a record 22,392 rooms; Atlanta, Georgia, with a record 159 projects and 18,522 rooms; and Chengdu, China, with 147 projects/26,951 rooms. This is followed by Shanghai, China, with 126 projects/24,340 rooms; and then California’s Inland Empire, with a new record 124 projects and 12,569 rooms.

In the first half of 2024, 948 new hotels/135,579 rooms were opened worldwide, with a further 1,586 new hotels/237,107 rooms planned by the end of the year. LE analysts forecast a total of 2,534 new hotels with 372,686 rooms for 2024. With global pipeline projects at an all-time high, LE forecasts that the number of new openings will continue to rise. In 2025, 2,756 new hotels/429,120 rooms are expected to open. For 2026, LE analysts forecast the opening of 2,812 new hotels/430,355 rooms worldwide.