India and Vietnam Lead Growth in 2025

The Asia Pacific hotel construction pipeline, excluding China, reaches an all-time high with significant growth in projects and rooms, driven by strong performances in India and Vietnam.

Record-breaking Growth in Hotel Construction

The Asia Pacific region, excluding China, has witnessed unprecedented growth in hotel construction projects, as reported in the Q2 2025 Hotel Construction Pipeline Trend Report by Lodging Econometrics (LE). The region’s total pipeline reached a new record with 2,140 projects comprising 409,616 rooms. This represents a 4% year-over-year (YOY) increase in projects and a 1% YOY rise in rooms.

Significant Increases in Construction and Planning

By the end of the second quarter, the region had 872 projects with 190,179 rooms under construction. Additionally, 380 projects with 74,333 rooms are scheduled to commence construction within the next 12 months, marking a 6% YOY increase in projects and a 13% YOY rise in rooms. The early planning stage also reached a new peak with 888 projects totaling 145,104 rooms, reflecting a 6% YOY increase in projects and a 3% YOY rise in rooms.

Notable Chain Scale Performance

The upscale chain scale led the APEC region with record-high totals of 534 projects and 105,002 rooms, showing a 7% increase in projects and a 6% rise in rooms YOY. The upper upscale scale also achieved record highs with 386 projects and 82,230 rooms, up 4% in projects YOY. The luxury chain scale saw a significant increase with 352 projects and 67,506 rooms, reflecting a 14% rise in projects and a 12% increase in rooms YOY.

Key Countries and Cities Driving Growth

India emerged as the leading country in the APEC region with a record-high of 761 projects and 99,195 rooms, marking a 25% increase in projects and a 32% rise in rooms YOY. Vietnam followed with 247 projects and 83,022 rooms. Japan, Indonesia, and Thailand also contributed significantly, with these five countries accounting for 71% of the region’s total pipeline projects.

In terms of cities, Bangkok, Thailand, led with 68 projects and 16,791 rooms, up 9% in rooms YOY. Jakarta, Indonesia, followed with 44 projects and 9,874 rooms, showing a 5% increase in projects and a 10% rise in rooms YOY. Phuket, Thailand, and Tokyo, Japan, also reported substantial growth.

Forecast and Future Outlook

In the first half of 2025, 130 new hotels with 22,182 rooms opened in the APEC region, with an additional 219 new hotels and 46,315 rooms expected to open in the second half. LE forecasts a total of 349 new hotels and 68,497 rooms by the end of 2025. Looking ahead, 2026 is expected to see the opening of 288 new hotels and 60,216 rooms. For 2027, LE anticipates 303 new hotels and 54,323 rooms to open across the APEC region.