The expansion of the upscale hotel sector is driving inventory growth in the Asia Pacific region, new data has revealed.
In its pipeline report for September 2016, STR revealed that there are now 238,829 new hotel rooms currently under construction across Asia Pacific, and more than half of these (52%, or 125,047) are in the upscale or upper-upscale categories.
The upscale sector has the largest pipeline (64,536 rooms), followed by the upper-upscale segment (60,511). The luxury sector accounts for a further 40,770 rooms, reflecting the continued strength of high-end hospitality in Asia Pacific.
In contrast, the economy and midscale sectors have a combined pipeline of just 13,192 new rooms.
And this trend is likely to continue in future; the majority of new rooms in the planning phases are also classified as being in the upscale and upper-upscale sectors.
The Asia Pacific region’s overall pipeline of 582,271 rooms in 2,555 hotels, either under construction or in the planning phases, represents an increase of 4.6% compared to this time last year.
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