Global hotel pipeline reaches record highs

Sustained development growth signals confidence but raises competitive pressure across markets

The global hotel construction pipeline has reached an all-time high, reflecting continued investment and long-term confidence in travel demand. New data shows record numbers of projects across luxury, upscale, and conversion segments, with particularly strong growth in emerging regions. While the United States and China remain dominant markets, countries such as India and Saudi Arabia are expanding rapidly. The surge in development suggests increasing competition, evolving market dynamics, and continued transformation of the global hospitality landscape.

Key takeaways

• Record construction pipeline: The global hotel pipeline reached nearly 16,000 projects with over 2.4 million rooms, marking a new historic high and modest year-on-year growth.
• Strong opening forecasts: More than 2,600 hotels annually are expected to open in 2026 and 2027, indicating sustained expansion despite economic uncertainties.
• Dominance of major markets: The United States and China together account for roughly 62% of global projects, maintaining their leadership in hotel development.
• Rapid emerging market growth: India and Saudi Arabia recorded significant increases in projects and rooms, highlighting rising travel demand and investment momentum.
• Luxury and upscale expansion: High-end segments reached record pipeline levels, signaling continued investor focus on premium experiences and brand-driven growth.
• Conversions gaining momentum: Conversion and renovation projects hit record highs, suggesting owners are repositioning existing assets rather than relying solely on new builds.
• Regional diversification trends: Asia Pacific outside China, along with the Middle East and Africa, showed notable project growth, reflecting shifting global tourism development patterns.

Source: Lodging Econometrics

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