LE: Global construction pipeline reaches record project counts in ’23

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 Q4 ’23, 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. Additionally, the 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.
The top countries by project count are led by the U.S., with an all-time high by projects of 5,964 projects/693,963 rooms. Following the U.S. is China, reaching an all-time high of 3,788 projects with 691,772 rooms. At Q4, the U.S. 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 U.K. 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 U.S. at Q4: Dallas, with 193 projects/22,291 rooms; Atlanta, with 151 projects/18,730 rooms; and Nashville, 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.
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