The number of new hotels being planned in China has fallen for the first time since 2007, a new report has revealed.
According to Lodging Econometrics’ China Construction Pipeline Trend report, there were 2,513 new hotel projects in the pipeline in mainland China at the end of 2015, comprising 548,550 rooms. This marks a 5% year-on-year decline in terms of projects and a 2% drop in rooms.
And the pace of hotel construction in China also appears to be decelerating. According to the Lodging Econometric report, there are now 1,884 hotel projects under construction in China, with 384,000 rooms, representing approximately 70% of the country’s total pipeline.
But this represents a 13% decline in terms of projects compared to this time last year, and an 8% drop in terms of rooms.
“Reflecting concern about the slowdown in the economy and the availability of financing, there is a hesitancy about projects migrating up the pipeline towards construction,” Lodging Econometrics stated.
There are 286 projects with 68,922 rooms scheduled to get underway in the next 12 months.
But even with the recent decrease, China continues to have the most pipeline rooms of any country in the world. It also includes 13 individual cities or resort markets with 50 or more hotels in the pipeline.
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