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Stability in China’s Hotel Construction as Upscale Projects Reach New Milestones

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You are at:Home » Stability in China’s Hotel Construction as Upscale Projects Reach New Milestones :: Hospitality Trends
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Stability in China’s Hotel Construction as Upscale Projects Reach New Milestones :: Hospitality Trends

7 August 20253 Mins Read


  Stability in China’s Hotel Construction as Upscale Projects Reach New Milestones

China’s hotel construction pipeline remains stable with significant growth in upscale chain projects, setting new records in the second quarter of 2025.

According to Lodging Econometrics’ Q2 2025 Hotel Construction Pipeline Trend Report, China’s hotel construction pipeline is showing relative stability, with a total of 3,733 projects comprising 672,224 rooms at the end of the second quarter. This data highlights the continued expansion and development within the country’s hospitality sector.

Current Construction and Future Plans

As of the second quarter’s close, 2,712 projects with 482,138 rooms are actively under construction, representing 73% of the total pipeline. Additionally, 352 projects with 62,292 rooms are scheduled to commence construction within the next 12 months. The early planning stage includes 669 projects with 127,794 rooms, indicating a robust future for hotel development in China.

Recent Construction and Renovation Activity

The second quarter saw the initiation of 192 projects, adding 30,570 rooms to the construction landscape. Furthermore, combined hotel renovations and brand conversions reached a record high, with 213 projects and 38,661 rooms, marking a 3% year-over-year increase in the number of projects.

Chain Scale Developments

The upper midscale chain scale continues to dominate China’s hotel construction pipeline, with 1,194 projects and 182,541 rooms, accounting for 32% of all projects. The upscale chain scale has achieved new records, with 1,072 projects and 225,407 rooms, reflecting a 9% increase in projects and a 3% increase in rooms year-over-year. Combined, the upscale and upper midscale chain scales constitute 61% of both projects and rooms in the pipeline. The luxury chain scale, while smaller, still has a significant presence with 257 projects and 56,882 rooms.

Regional Focus

Chengdu leads the country in terms of hotel construction projects, with 143 projects and 25,331 rooms. Shanghai follows with 124 projects and 22,602 rooms. Other key cities include Guangzhou with 114 projects and 23,143 rooms, Hangzhou with 100 projects and 19,968 rooms, and Xi’an with 86 projects and 15,292 rooms. These cities are central to China’s ongoing hospitality growth.

Forecast for Hotel Openings

In the first half of 2025, 322 new hotels with 48,794 rooms opened in China. Looking ahead, an additional 834 new hotels with 122,068 rooms are expected to open in the third and fourth quarters. Lodging Econometrics analysts project a total of 1,156 new hotels with 170,862 rooms by the end of 2025. The outlook for 2026 anticipates 769 new hotels with 135,138 rooms, and for the first time, a forecast for 2027 predicts 656 new hotels with 125,686 rooms.

In conclusion, China’s hotel construction pipeline demonstrates a stable growth trajectory, with significant developments in upscale and upper midscale chain scales. The data suggests that China’s hospitality sector is poised for continued expansion, driven by strategic construction and renovation efforts across key regions.

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