China’s Hotel Sector Sees Record Brand Conversions and Growth in Upscale Developments

China’s hotel construction pipeline reached 3,608 projects and 644,938 rooms at the end of 2025, with record-high brand conversions and strong growth in upscale and upper midscale chain developments, according to Lodging Econometrics’ latest report.

China’s hotel construction sector expanded at the close of the fourth quarter of 2025, as reported by Lodging Econometrics (LE). The total pipeline included 3,608 projects comprising 644,938 rooms.

Projects under construction totaled 2,592 and 458,734 rooms. Additionally, 366 projects with 62,119 rooms were scheduled to begin construction within the next 12 months, representing a 3% year-over-year (YOY) increase in projects. Early planning stages included 650 projects totaling 124,085 rooms.

Growth in Upper Midscale and Upscale Chain Scales

The upper midscale chain scale was the most active segment in China’s hotel pipeline at the end of 2025, with 1,226 projects and 182,937 rooms, marking a 2% YOY increase in project count and accounting for 34% of all projects.

The upscale chain scale had 1,066 projects and 221,714 rooms, representing a 5% increase in projects and a 1% increase in rooms YOY, making up 30% of the total pipeline. Combined, the upper midscale and upscale chain scales accounted for 2,292 projects and 404,651 rooms, representing 64% of all projects and reflecting a 7% increase in projects and a 1% increase in rooms YOY.

Record-High Brand Conversions and Renovations

Brand conversions reached record highs in both project and room counts at the end of the fourth quarter of 2025. Hotel renovations and brand conversions combined totaled 265 projects and 48,983 rooms, representing a 36% increase in projects and a 25% increase in rooms YOY.

Regional Distribution of Hotel Projects

Chengdu led China’s hotel construction pipeline with 136 projects and 24,216 rooms. Guangzhou followed with 126 projects and 25,329 rooms, reflecting a 5% YOY increase in both projects and rooms. Shanghai ranked third with 107 projects and 20,203 rooms. Hangzhou had 100 projects and 18,418 rooms, and Xi’an had 83 projects and 14,777 rooms.

Hotel Openings and Future Forecasts

In 2025, China saw the opening of 970 new hotels, adding 141,236 rooms. Lodging Econometrics forecasts 957 new hotels with 147,474 rooms opening in 2026, and 821 new hotels with 139,038 rooms projected to open in 2027.

Conclusion

China’s hotel construction pipeline continues to grow, driven by increased activity in the upper midscale and upscale chain segments and record-high brand conversions and renovations. Key cities such as Chengdu, Guangzhou, and Shanghai are central to this expansion. The outlook for hotel openings in 2026 and 2027 suggests ongoing development momentum in the sector.