The total investment pipeline included 3,608 hotel projects with 644,938 rooms, underscoring the sector’s ongoing momentum.
According to the survey, 2,592 projects were under construction, corresponding to 458,734 rooms. Additionally, 366 projects with 62,119 rooms were scheduled to commence within the next 12 months, reflecting a 3% year-on-year increase in the number of projects. A further 650 projects, totaling 124,085 rooms, remained at the early planning stage.
Dominance of Upper Midscale and Upscale Segments
Data show that the upper midscale segment emerged as the most active in China’s hotel pipeline, with 1,226 projects comprising 182,937 rooms. The number of projects rose 2% year-on-year, representing 34% of the total pipeline.
The upscale segment followed, with 1,066 projects and 221,714 rooms, marking a 5% increase in projects and a 1% increase in rooms compared to the previous year. Together, the two segments accounted for 2,292 projects and 404,651 rooms—64% of the total pipeline—showing a 7% rise in projects and a 1% increase in rooms year-on-year.
Conversions of existing hotels into branded properties reached historically high levels, both in terms of projects and room counts. Renovations and brand conversions totaled 265 projects with 48,983 rooms, up 36% in projects and 25% in rooms year-on-year.
Cities Leading Hotel Investment
Chengdu led hotel development in China with 136 projects and 24,216 rooms. Guangzhou followed with 126 projects and 25,329 rooms, posting a 5% year-on-year increase in both projects and rooms. Shanghai ranked third with 107 projects and 20,203 rooms, while high activity was also recorded in Hangzhou and Xi’an.
Outlook for the Coming Years
During 2025, 970 new hotels opened in China, adding 141,236 rooms to the market. Lodging Econometrics estimates that 957 new hotels with 147,474 rooms will become operational in 2026, while 821 new hotels with 139,038 rooms are projected for 2027.
Overall, China’s hotel sector is expected to maintain its growth trajectory, driven primarily by the upper midscale and upscale segments, as well as a shift toward renovations and repositioning of existing properties under international brands.