China's Hotel Construction Pipeline Experiences Slight Dip; Upscale Chain Scale Projects at All&Time High

Chengdu is leading China in hotel construction projects, with 145 projects totaling 25,898 rooms, according to the Hotel Construction Pipeline Trend Report for China released by Lodging Econometrics (LE) for Q1 2025. The report indicates that China’s overall construction pipeline consists of 3,704 projects totaling 670,185 rooms, a slight decrease from the peak reached in Q3 2024. The upscale chain-scale projects in China have achieved their highest-ever total.

As of the end of Q1 2025, there are 2,752 projects under construction in China, with 490,897 rooms. Additionally, 316 projects with 55,287 rooms are set to begin construction within the next year, while 636 projects comprising 124,001 rooms are in the early planning stages. The number of construction starts in China at the end of Q1 was 237 projects with 38,775 rooms, marking a 13% increase in projects and a 16% increase in rooms compared to Q4 2024. Hotel renovations and brand conversions have also seen an increase, with 189 projects totaling 34,797 rooms, up 12% year-over-year.

The report highlights a record high for upscale chain-scale projects at 1,043 projects with 223,499 rooms, representing an 11% increase in projects and a 5% increase in rooms year-over-year. Additionally, the upper midscale chain-scale category leads the pipeline with 1,161 projects comprising 177,644 rooms, making up 60% of the total projects and rooms in China’s pipeline.

Apart from Chengdu, other leading cities in hotel construction projects in China include Shanghai with 131 projects and 24,733 rooms, Guangzhou with 119 projects and 24,384 rooms (up 8% in projects and 5% in rooms year-over-year), Hangzhou with 96 projects and 19,425 rooms, and Xi’an with 89 projects and 15,768 rooms.

In Q1, 144 new hotels with 21,797 rooms opened in China, and LE analysts predict that 1,009 new hotels with 151,907 rooms will open in Q2-Q4 2025. The forecast for the total number of new hotels opening by the end of 2025 is 1,153 hotels with 173,704 rooms, with an additional 765 new hotels and 133,332 rooms expected to open in 2026.