Lodging Econometrics names top cities for hotel construction

Lodging Econometrics’ latest Global Construction Pipeline Trend Report ranked Dubai fifth worldwide for rate of rooms under construction by project count, with 104 projects and 29,948 rooms in the pipeline.

New York ranked at the top of the list with 187 projects and 32,136 rooms, ahead of Jakarta with 130 projects and 22,851 rooms. Seoul came in third with 128 projects and 27,187 rooms, with Shanghai coming in fourth with 114 projects and 24,285 rooms. Tokyo has 57 projects with 12,713 rooms; Kuala Lumpur has 53 projects with 13,440 rooms; and Bangkok has 40 projects with 8,876 rooms.

Kuala Lumpur, the capital of Malaysia, had the strongest growth in the last year, increasing its pipeline by 14 projects, or 36 percent. Projects currently under construction account for 32 of the 53 projects, 60 percent of the city’s pipeline.

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LE’s Asia Pacific Construction Pipeline Trend Report noted that the region’s pipeline for the first quarter of the year, excluding China, has 1,545 projects with 309,186 rooms, down 5 percent by projects and 3 percent by rooms year-over-year.

For hotels currently under construction outside of China, the Asia Pacific Pipeline has 851 projects with 176,869 rooms, down 5 percent year-over-year by both projects and rooms. There are 277 projects with 57,769 rooms scheduled to start construction in the next 12 months, up 9 percent by projects and 32 percent by rooms year-over-year. Projects in early planning, 417 projects with 74,548 rooms, are down 14 percent by both projects and rooms.

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The survey is open through June 17 and results will be published in the August issue of Hotel Management. 

The company has taken “substantial steps” to preserve liquidity and mitigate the impact of the current extremely low levels of demand.

The company believes its long-term focus, disciplined capital allocation strategy and targeted actions will help it weather the storm.