China’s Hotel Construction Pipeline Sees Record-High Brand Conversion Activity, Upscale and Upper Midscale Chain Scales Drive Growth at Q4 Close

PORTSMOUTH, NH – February 9, 2025

According to the latest China Construction Pipeline Trend Report from Lodging Econometrics (LE), China’s total hotel construction pipeline stands at 3,608 projects/644,938 rooms at the close of the fourth quarter of 2025.

Hotel projects currently under construction in China stand at 2,592 projects/458,734 rooms, while projects scheduled to start construction sometime within the next 12 months stand at 366 projects/62,119 rooms, up 3% by projects year-over-year (YOY). Projects in the early planning stage total 650 projects/124,085 rooms at Q425.

The upper midscale chain scale remains the preferred chain scale for development at Q425 close with 1,226 projects/182,937 rooms, up 2% by projects YOY and accounting for 34% of the projects in China’s total pipeline. The upscale chain scale continues its strong performance, increasing 5% by projects and 1% by rooms YOY to stand at 1,066 projects/221,714 rooms, representing 30% of the country’s pipeline. Together, these two chain scales account for 64% of all projects in China’s pipeline, with a combined total of 2,292 projects/404,651 rooms, up 7% by projects and 1% by rooms YOY.

Notably, brand conversions reached a new record-high in both project and room counts at Q425, and hotel renovations and brand conversions combined also achieved a record-high total, standing at 265 projects/48,983 rooms, representing a significant 36% increase in projects and a 25% increase in rooms YOY.

At the close of 2025’s fourth quarter, Chengdu continues to lead China’s hotel construction pipeline with 136 projects/24,216 rooms. Guangzhou follows with 126 projects/25,329 rooms, showing steady growth of 5% by both projects and rooms YOY. Shanghai ranks third with 107 projects/20,203 rooms, then Hangzhou with 100 projects/18,418 rooms, and Xi’an with 83 projects/14,777 rooms.

China saw robust hotel openings throughout 2025, with 970 new hotels accounting for 141,236 rooms opening during the year. Looking ahead, LE forecasts 957 new hotels/147,474 rooms anticipated to open in 2026, followed by 821 new hotels/139,038 rooms projected to open in 2027.

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