The global construction pipeline ascends to record project counts at 2023 year-end

04.03.2024 - 07:52 / traveldailynews.com / Theodore Koumelis

Τhe renovation and conversion pipeline globally is the highest it has ever been, reaching 3,291 projects/510,584 rooms at the end of Q4 2023.

PORTSMOUTH, NH – The Q4 2023 Global Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE) reveals that the global hotel construction pipeline hit all-time high project counts at Q4. At the close of 2023, LE analysts state that the total global construction pipeline stands at 15,196 projects/2,367,727 rooms, a 7% increase in projects and a 3% increase in rooms year-over-year (YOY).

There are 6,160 projects/1,096,748 rooms currently under construction worldwide at Q423, for a 2% increase by projects YOY. Projects scheduled to start construction in the next 12 months stand at 3,850 projects/536,588 rooms, for a 7% increase by projects and a 5% increase by rooms YOY. Projects and rooms in the early planning stage are at all-time highs and stand at 5,186 projects/734,391 rooms, increasing 12% and 6% YOY, respectively.

The top countries by project count are led by the United States, with an all-time high by projects of 5,964 projects/693,963 rooms. Following the United States is China, reaching an all-time high of 3,788 projects with 691,772 rooms. At Q4, the United States represents 39% of the projects in the total global pipeline, while China accounts for 25% of the projects in the total pipeline, resulting in 64% of all global projects in just these two countries. Distantly following are India with 514 projects/61,075 rooms, the United Kingdom with 322 projects/43,990 rooms, and Saudi Arabia with 300 projects/72,761 rooms.

Three of the five cities with the largest construction pipeline totals are located in the United States at Q4: Dallas, TX, with 193 projects/22,291 rooms; Atlanta, GA, with 151 projects/18,730 rooms; and Nashville, TN, with 123 projects/16,148 rooms. Chengdu, China, also ranks among the top five cities with 148 projects/29,575 rooms. The Provincial cities in Saudi Arabia follow with 133 projects/28,656 rooms.

Globally, during 2023, 1,978 new hotels opened, accounting for 292,380 rooms. Six hundred thirty-six of those hotels and 94,559 rooms opened in the fourth quarter. LE analysts forecast, for 2024, an additional 2,550 new hotels with 389,799 rooms to open by year-end and another 2,804 new hotels/430,546 rooms to open in 2025.

Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.