Lodging Econometrics reports that at the close of the first quarter of 2026, China’s hotel construction pipeline included 3,602 projects totaling 640,328 rooms. The majority of these projects—2,572 projects with 451,156 rooms—were classified as under construction. This segment accounted for 71% of the total projects and 70% of the total rooms in the pipeline.
The scheduled-to-start-within-the-next-12-months category included 360 projects and 58,840 rooms. This stage saw a year-over-year increase of 14% in project count and 6% in room count. The early planning stage comprised 670 projects and 130,332 rooms, reflecting a 5% year-over-year increase in both metrics.
Chain Scale Distribution
The upper midscale chain scale led the pipeline with a record 1,249 projects and 183,534 rooms. This represented an 8% year-over-year increase in projects and a 3% increase in rooms, which together made up 35% of the total pipeline. The upscale chain scale followed, with 1,087 projects and 223,180 rooms, up 4% in projects from the previous year. Combined, these two segments accounted for 2,336 projects and 406,714 rooms, highlighting their significant role in China’s hotel development landscape.
Conversion and New Project Activity
Conversion activity reached a record high in the first quarter, indicating increased investor interest in repurposing existing properties. Construction starts for the quarter totaled 188 projects and 30,539 rooms. New project announcements also increased, with 234 projects and 35,377 rooms reported, marking a 21% rise in projects and a 9% increase in rooms year-over-year.
Geographic Concentration of Activity
Hotel construction activity was concentrated in a handful of major cities. Chengdu led with 130 projects and 23,545 rooms. Guangzhou followed with 125 projects and 25,500 rooms. Other leading cities included Shanghai (111 projects, 20,973 rooms), Hangzhou (96 projects, 18,364 rooms), and Xi’an (82 projects, 14,511 rooms).
Hotel Openings and Forecasts
In the first quarter of 2026, 287 new hotels with 37,449 rooms opened in China. Projections for the remainder of the year indicate that an additional 824 new hotels with 125,758 rooms are expected to open in the second through fourth quarters. By year-end, analysts forecast a total of 1,111 new hotels and 163,207 rooms to open. Looking ahead to 2027, 861 new hotels with 144,061 rooms are projected to open.
Summary
China’s hotel construction pipeline remains robust, with the majority of projects in the under-construction phase and notable growth in both new project announcements and conversions. Activity is particularly strong in upper midscale and upscale segments, and development is concentrated in several major cities. The forecast for new hotel openings through 2026 and into 2027 suggests continued expansion in the sector.
