Analysts at Lodging Econometrics (LE) state that Asia Pacific’s total construction pipeline, excluding China, hit a new all-time high at the close of 2019 with 1,926 projects/409,447 rooms. Project counts are up 7%, while room counts are up 8%, year-over-year (YOY).
Projects currently under construction stand at a record 991 projects with 224,354 rooms. Projects scheduled to start construction in the next 12 months and those in the early planning stage are also at all-time highs with 436 projects/85,417 rooms and 499 projects/99,676 rooms, respectively.
New projects announced into the pipeline have accelerated noticeably with 319 projects/55,165 rooms announced in the fourth quarter of 2019. This is the highest number of new projects announced since the second quarter of 2014 when 568 projects/98,738 rooms were announced.
The Asia Pacific region had 374 new hotels/69,527 rooms open in 2019. The LE forecast anticipates that 439 projects/84,188 rooms are expected to open in 2020. Should all these projects come online, this will be the highest count of new hotel openings that LE has ever recorded. Then in 2021, new hotel openings are forecast to slow to 371 projects/76,710 rooms.
Countries with the largest pipelines in Asia Pacific, excluding China, are led by Indonesia with 367 projects/60,354 rooms, which accounts for 19% of the projects in the total pipeline. Next is India with 265 projects/36,469 rooms, then Japan with 251 projects/49,869 rooms. These countries are followed by Australia, at an all-time high, with 192 projects/36,350 rooms and then Vietnam with 149 projects/59,857 rooms.
Cities in the Asia Pacific region, excluding China, with the largest construction pipelines are Jakarta, Indonesia with 86 projects/15,163 rooms, Seoul, South Korea with 68 projects/13,373 rooms and Tokyo, Japan with 61 projects/13,210 rooms. Kuala Lumpur, Malaysia follows with 50 projects/13,147 rooms and then Bangkok, Thailand with 43 projects/11,427 rooms.
The top franchise companies in Asia Pacific, excluding China, are Marriott International, at a new all-time high, with 273 projects/61,590 rooms, AccorHotels with 224 projects/46,502 rooms, and InterContinental Hotels Group (IHG) with 151 projects/32,701 rooms. Hilton Worldwide follows, also at record high counts, with 93 projects/20,762 rooms. Combined, these four companies account for 40% of the rooms in the total construction pipeline.
Top brands in Asia Pacific’s construction pipeline, excluding China, include Marriott International’s Fairfield Inn, at a record high, with 40 projects/6,563 rooms, and Courtyard with 37 projects/7,889 rooms; AccorHotels’ Ibis brands with 49 projects/9,305 rooms and Novotel with 43 projects/10,438 rooms; IHG’s Holiday Inn with 58 projects/12,457 rooms and Holiday Inn Express with 31 projects/6,281 rooms; Hilton Worldwide’s top brands are DoubleTree with 33 projects/6,514 rooms and full-service Hilton Hotel & Resorts, at an all-time high, with 30 projects/7,885 rooms.
*Please keep in mind that the COVID-19 (coronavirus) did not have an impact on fourth quarter 2019 totals reported by LE. As of the printing of this media release, countries in Asia Pacific that have been most affected by COVID-19, after China, are South Korea, Japan and Singapore. New confirmed cases continue to be added and it is still too early to predict the full impact of the outbreak on the hospitality and lodging industry. We will have more information to report in the coming months.
Related Stories
Market Data | Nov 23, 2020
Construction employment is down in three-fourths of states since February
This news comes even after 36 states added construction jobs in October.
Market Data | Nov 18, 2020
Architecture billings remained stalled in October
The pace of decline during October remained at about the same level as in September.
Market Data | Nov 17, 2020
Architects face data, culture gaps in fighting climate change
New study outlines how building product manufacturers can best support architects in climate action.
Market Data | Nov 10, 2020
Construction association ready to work with president-elect Biden to prepare significant new infrastructure and recovery measures
Incoming president and congress should focus on enacting measures to rebuild infrastructure and revive the economy.
Market Data | Nov 9, 2020
Construction sector adds 84,000 workers in October
A growing number of project cancellations risks undermining future industry job gains.
Market Data | Nov 4, 2020
Drop in nonresidential construction offsets most residential spending gains as growing number of contractors report cancelled projects
Association officials warn that demand for nonresidential construction will slide further without new federal relief measures.
Market Data | Nov 2, 2020
Nonresidential construction spending declines further in September
Among the sixteen nonresidential subcategories, thirteen were down on a monthly basis.
Market Data | Nov 2, 2020
A white paper assesses seniors’ access to livable communities
The Joint Center for Housing Studies and AARP’s Public Policy Institute connect livability with income, race, and housing costs.
Market Data | Nov 2, 2020
More contractors report canceled projects than starts, survey finds
Construction employment declined in most metros in latest 12 months.
Multifamily Housing | Oct 30, 2020
The Weekly show: Multifamily security tips, the state of construction industry research, and AGC's market update
BD+C editors speak with experts from AGC, Charles Pankow Foundation, and Silva Consultants on the October 29 episode of "The Weekly." The episode is available for viewing on demand.
