The Hotel Construction Pipeline Trend Report for China from Lodging Econometrics (LE) for Q1 2025 shows that China’s construction pipeline is currently at 3,704 projects/670,185 rooms. This slightly decreased from the peak project total that the pipeline reached in Q3 2024. LE also highlights that upscale chain-scale projects in China have reached their highest-ever total.
Current State of the Construction Pipeline
As of the end of Q1 2025, China has 2,752 projects/490,897 rooms under construction. An additional 316 projects/55,287 rooms are scheduled to commence within the next 12 months, and 636 projects/124,001 rooms are in the early planning stages. This signifies a slight decrease compared to the peak pipeline project total in Q3 2024.
Construction Starts and Hotel Renovations
At the end of Q1, the number of construction starts in China was 237 projects/38,775 rooms, a 13% increase in projects and a 16% increase in rooms compared to Q4 2024. Hotel renovations and brand conversions also increased to 189 projects/34,797 rooms, up 12% by projects year-over-year (YOY).
Upscale Chain Scale Projects Reach New Heights
The report reveals an all-time high for upscale chain-scale projects at 1,043 projects/223,499 rooms, an increase of 11% by projects and 5% by rooms YOY. This, coupled with the upper midscale chain-scale leading the pipeline at 1,161 projects/177,644 rooms, accounts for 60% of the total projects and rooms in China’s pipeline.
Leading Cities in Hotel Construction
Chengdu leads China in hotel construction projects, with 145 projects/25,898 rooms. Shanghai follows with 131 projects/24,733 rooms, then Guangzhou with 119 projects/24,384 rooms, up 8% by projects and 5% by rooms YOY. Hangzhou and Xi’an follow with 96 projects/19,425 rooms and 89 projects/15,768 rooms, respectively.
New Hotel Openings
During Q1, 144 new hotels/21,797 rooms opened in China. An additional 1,009 new hotels/151,907 rooms will open throughout Q2-Q4 2025. LE analysts predict 1,153 new hotels/173,704 rooms will open by the end of 2025. In 2026, the forecast is for 765 new hotels/133,332 rooms to open.
