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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