China’s hotel market continues to demonstrate a strong recovery, with a remarkable 99% year-over-year increase in Revenue per Available Room (RevPAR) for the week ending May 13. However, when compared to the same week in 2019, RevPAR experienced a decline of -7%.
According to the latest China Construction Pipeline Trend Report by Lodging Econometrics, China’s hotel construction pipeline stood at an impressive 3,659 projects with 680,959 rooms by the end of the first quarter of 2023. During this period, China opened 78 hotels with 14,335 rooms. LE analysts predict a total of 805 hotel projects with 115,356 rooms opening in 2023, followed by 899 hotel projects with 145,635 rooms in 2024.
Examining the current status of China’s pipeline, there are 2,697 projects under construction with 484,152 rooms. Additionally, 219 projects have already begun construction, accounting for 38,162 rooms. Furthermore, there are 278 new project announcements, 365 projects set to start in the next 12 months, and 597 projects in the early planning phase.
Among the cities in China with the largest pipelines in the first quarter of 2023, Chengdu leads with 138 projects and 27,770 rooms, followed by Shanghai with 116 projects and 23,031 rooms. Guangzhou, Hangzhou, and Xi’an also feature prominently, each with around 100 projects.
Regarding hotel companies with a significant presence in China’s pipeline, Hilton Worldwide takes the lead with 693 projects and 124,796 rooms, closely followed by IHG with 470 projects and 97,692 rooms. Marriott International and Accor are also prominent players, each with hundreds of projects and tens of thousands of rooms.
Analyzing the specific hotel brands with significant pipelines in China, Hilton’s Hampton brand leads with 360 projects and 53,478 rooms, while Hilton Garden Inn follows closely with 102 projects and 19,615 rooms. IHG’s Holiday Inn Express and Holiday Inn brands also have a strong presence, with 188 and 74 projects, respectively.
Marriott International’s Marriott and Four Points brands, along with Accor’s ibis and Mercure Hotel brands, showcase significant pipeline activity as well. Finally, Jinjiang Holdings’ 7 Days Inn and Vienna Hotel brands contribute to the thriving hotel construction pipeline in China.
The future of China’s hotel industry appears promising, with robust construction activity and various international hotel brands vying for a share in this dynamic market.