China’s Hotel Construction Pipeline Shows Relative Stability as Upscale Chain Scale Sets New Records at Q2 Close

Lodging Econometrics' (LE's) Q2 2025 Hotel Construction Pipeline Trend Report reveals China's construction pipeline stands at 3,733 projects/672,224 rooms at the close of the second quarter.

At the close of the second quarter, China has 2,712 projects/482,138 rooms under construction. Claiming 73% of the total pipeline, the majority of the projects in China’s hotel construction pipeline at Q2 are currently in the under construction stage. Projects scheduled to start construction in the next 12 months stand at 352 projects/62,292 rooms, while 669 projects/127,794 rooms are in the early planning stage.

Construction starts in the second quarter stood at 192 projects/30,570 rooms. Combined hotel renovations and brand conversions reached a new all-time high project total this quarter at 213 projects/38,661 rooms, up 3% by projects YOY.

The upper midscale chain scale continues to lead China's pipeline with 1,194 projects/182,541 rooms, representing 32% of all projects in the total pipeline. The upscale chain scale reached new all-time high project totals and new all-time high room totals this quarter, growing to 1,072 projects/225,407 rooms, up 9% by projects and 3% by rooms year-over-year (YOY). Together, the upscale and upper midscale chain scales account for 61% of projects and 61% of rooms in China's construction pipeline. The luxury chain scale stands at 257 projects/56,882 rooms.

At the Q2 close, Chengdu has the greatest number of projects in the country’s total hotel construction pipeline, with 143 projects/25,331 rooms. Shanghai follows with 124 projects/22,602 rooms. Next is Guangzhou with 114 projects/23,143 rooms, then Hangzhou with 100 projects/19,968 rooms, followed by Xi’an with 86 projects/15,292 rooms.

During the first half of 2025, 322 new hotels accounting for 48,794 rooms opened in China, with an additional 834 new hotels/122,068 rooms forecast to open in Q3-Q4. LE analysts forecast a total of 1,156 new hotels/170,862 rooms to open by year-end 2025. In 2026, LE analysts forecast another 769 new hotels/135,138 rooms to open, and announcing for the first time, the LE forecast for new hotel openings in 2027 predicts 656 new hotels with 125,686 rooms to open.

About Lodging Econometrics (LE)

For over 25 years, Lodging Econometrics (LE) has been the industry-leading provider of global hotel intelligence and decision-maker contact information. LE custom-builds business development database programs for hotel franchise companies looking to accelerate their brand growth, hotel ownership and management companies seeking to expand their real estate portfolios, and lodging industry vendors wanting to increase their sales. To learn more about our business development programs contact us: +1 603.431.8740, ext 0025 or [email protected].

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