Over half a million hotel rooms are being built in the Asia Pacific region, making it the second largest pipeline in the world, according to Lodging Econometrics report for the first half of this year.
It said Asia Pacific’s total construction pipeline has 2,226 projects comprising 506,646 rooms as of the end of Q2. Although at a new peak, it is now cresting and may be poised to start declining as the worldwide economic slowdown is becoming a concern.
Projects scheduled to start construction in the next 12 months have declined for two consecutive quarters. Q2 stands at 351 projects/88,327 rooms, down 16% by projects from the peak reached in Q4 2007. Of the 20 markets with the largest pipelines, 13 are in China and five in India. The other two markets are Bangkok and Jakarta.
China’s pipeline contains 1,240 projects/323,956 rooms, which represents 55% of all projects in Asia and 64% of all rooms. 78% of China’s pipeline is already under construction, suggesting that new hotel openings will continue heavy through 2010. India has the second largest pipeline with 470 projects/76,304 rooms.
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