China Hotel Construction Pipeline Hits Record High

Unprecedented Pipeline Growth

China's hotel construction pipeline has soared to unprecedented heights, reaching a record-high 3,815 projects with 699,786 rooms at the end of Q2 2023.

This represents a significant 4% increase from the previous quarter, marking a remarkable surge in the industry.

Key Takeaways

• The hotel construction pipeline in China has reached a record-high of 3,815 projects.
• The pipeline includes 699,786 rooms, marking a 4% increase from Q1 2023.
• China's hotel RevPAR declined by 85% year-over-year in Q2 2023.

Industry Impact

The robust growth of the construction pipeline indicates the continued optimism and long-term growth potential of China's hotel industry.

However, it is important to note that China's hotel RevPAR experienced a sharp decline of 85% year-over-year in Q2 2023, highlighting the ongoing challenges faced by the sector due to the pandemic.

Outlook

According to Lodging Econometrics (LE), the China Construction Pipeline Trend Report for Q3 2023 projects sustained growth in the pipeline in the coming quarters.

The industry is expected to continue recovering and adapting to the post-pandemic landscape, with a focus on domestic tourism and business travel.