Healthy growth for the back end of the Latin America construction pipeline at year-end 2022

In the recently released Latin America Construction Pipeline Trend Report from Lodging Econometrics (LE), analysts report that at theLatin America hotel construction pipeline close of Q4 2022, the total construction pipeline stands at 536 projects/87,827 rooms. At the end of the fourth quarter, projects currently under construction stand at 222 projects/40,270 rooms. Projects scheduled to start construction in the next 12 months are up 7% by projects and 15% by rooms, year-over-year (YOY), standing at 158 projects/23,753 rooms and those in the early planning stage stand at 156 projects/23,804 rooms, up 16% and 8%, respectively. Mexico has the most projects in the pipeline at the Q4 close, with 203 projects/33,475 rooms. Brazil follows with 88 projects/14,867 rooms, and next is Peru with 27 projects/3,315 rooms. These three countries in Latin America account for 59% of the projects in the construction pipeline in the region. Following Peru is the Dominican Republic with 26 projects/5,932 rooms, and Argentina with 17 projects/1,941 rooms. Cities in Latin America with the largest project counts in the pipeline include Mexico City, Mexico with 24 projects/3,168 rooms, Guadalajara, Mexico with 21 projects/2,687 rooms, and Cancun, Mexico with 19 projects/7,524 rooms. Lima follows with 14 projects/1,993 rooms and San Paulo with 11 projects/2,483 rooms. The hotel franchise companies with the largest construction pipelines in Latin America at the close of the fourth quarter are Hilton Worldwide with 101 projects/13,737 rooms, Marriott International with 100 projects/16,161 rooms, and Accor with 75 projects/9,595 rooms. These three franchise companies account for 51% of the projects in the total Latin America construction pipeline. The top brands in the Latin America hotel construction pipeline at the Q4 close are Accor’s Ibis brands with 49 projects/6,152 rooms, Hilton Garden Inn

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Upscale projects in China’s hotel construction pipeline reach new all-time high

In the recently released China Construction Pipeline Trend Report from Lodging Econometrics (LE), analysts report that the country’s totalChina hotel construction trends hotel construction pipeline, at the close of the fourth quarter, stands at 3,581 projects/675,074 rooms. At the close of 2022, hotel development in China continued to move forward despite the country’s economic slowdown. This deceleration, due in part to rigorous COVID restrictions, reduced demand for exports, and a real estate decline, is expected to rebound in 2023 as more cities implement relaxed COVID guidelines and consumer spending and real estate investing increase. Projects presently under construction in China are at 2,618 projects/472,396 rooms, up 2% and 1% year-over-year (YOY), respectively. Projects scheduled to start construction in the next 12 months stand at 404 projects/79,048 rooms and projects in the early planning stage closed the quarter standing at 559 projects/123,630 rooms. The upscale chain scale reached peak project counts in the fourth quarter, accounting for 22% of projects and 28% of the rooms in China’s hotel construction pipeline. Cities in China with the largest pipelines, at the Q4 close, are Chengdu with 132 projects/26,891 rooms, Shanghai with 117 projects/22,539 rooms, Guangzhou with 108 projects/23,492 rooms, Hangzhou with 102 projects/21,519 rooms, and Xi’an with 96 projects/17,297. Franchise companies topping China’s construction pipeline at the Q4 close are led by Hilton Worldwide with 680 projects/123,403 rooms and InterContinental Hotels Group (IHG) with record project and room counts of 454 projects/94,009 rooms. Next is Marriott International with 370 projects/97,497 rooms, Accor with 222 projects accounting for a record-high 39,141 rooms, and then Jin Jiang Holdings with 177 projects/17,864 rooms. Top brands in the pipeline at the close of the quarter

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