The total hotel-construction pipeline for the Asia-Pacific region, excluding China, is at an all-time high at 1,793 projects and 393,732 rooms, up 3 percent and 7 percent respectively, year over year, according to a recent report from Lodging Econometrics. The pipeline has continued to improve despite slowing economies in the region and growth uncertainties in neighboring China.
The region (not counting China, which is hitting its own record highs) currently has 972 projects under construction with a record high room count of 225,896. There are 405 hotels with 81,592 rooms scheduled to start construction in the next 12 months and 416 hotels in the early planning stage with room counts at an all-time high of 86,244 rooms.
In the first half of 2019, 154 new hotels and 25,227 rooms opened across the region. Analysts at Lodging Econometrics expect another 240 new hotels with 45,141 rooms will open in the second half of 2019. New hotel openings will continue to climb in 2020 to an all-time high of 394 hotels and 80,041 rooms before dipping to 326 hotels and 66,989 rooms scheduled to open in 2021, according to the data.
Top Countries, Top Cities
Apart from China, the countries with the largest pipelines in the region are Indonesia, with 378 hotels and 63,196 rooms, accounting for 21 percent of Asia-Pacific’s total pipeline; India with 238 hotels and 34,966 rooms; and Japan with 226 hotels and 47,294 rooms, the report noted. These countries are followed by Malaysia with 138 hotels with an all-time high record count of 37,760 rooms, followed by Vietnam with 136 hotels and 57,050 rooms.
Lodging Econometrics' analysts expect Japan to dominate the 2019 regional forecast with 36 percent of total new hotel openings in preparation for the 2019 Rugby World Cup and the 2020 Summer Olympics, the company said. Global brands have been paying attention, and not just for the short-term: IHG is slated to open the country's second Holiday Inn resort next year, Marriott International will debut its Aloft brand in Tokyo in 2020, Hyatt will bring its Unbound Collection to the country in 2022 and Hilton is slated to open a new hotel in Hokkaido the following year.
Asia-Pacific cities with the largest hotel-construction pipelines are led by Jakarta, Indonesia with 88 hotels and 16,112 rooms. Next is Seoul, South Korea with 72 hotels and 13,646 rooms and Tokyo with 58 hotels and 15,724 rooms. Kuala Lumpur, Malaysia follows with 55 hotels and 14,801 rooms and Kyoto-Osaka-Kobe, Japan with 46 projects and 11,456 rooms.
Top Companies, Top Brands
The top four franchise companies, accounting for 42 percent of all rooms in the pipeline are Accor with 250 hotels and 53,050 rooms; Marriott International with 245 hotels and 54,934 rooms' IHG at a record high 160 hotels and 35,746 rooms; and Hilton at an all-time high with 88 hotels and 19,894 rooms.
Top brands in the region's hotel-construction pipeline are Accor’s Ibis brands with 64 hotels and 12,341 rooms and Novotel with 46 projects and 10,930 rooms. Marriott International’s two top brands are hitting record highs with Fairfield Inn at 37 projects and 5,726 rooms and Courtyard at 36 projects and 7,669 rooms. IHG’s Holiday Inn has a record 62 projects with 14,237 rooms and Holiday Inn Express has 36 projects and 7,709 rooms. Hilton’s DoubleTree has 30 projects and 6,090 rooms and the full-service Hilton Hotels & Resorts is also at a record high with 29 projects and 7,691 rooms.