CoStar: Americas, Asia Pacific lead global pipeline surge in Q2
The U.S., China, Germany and Saudi Arabia lead in the Americas, Asia Pacific, Europe and ME&A, respectively
By Vishnu Rageev RJul 29, 2024
THE AMERICAS AND Asia Pacific saw a year-over-year increase in hotel pipeline activity at the end of second quarter, according to CoStar. The U.S. leads the Americas with around 157,713 rooms under construction, while China tops the Asia Pacific with 319,012 rooms under construction.
In the Americas, construction surged to around 208,718 rooms, an 8.3 percent rise from June 2023, CoStar’s June 2024 data showed. Final planning had 299,153 rooms, up 6.9 percent from the previous year, while the planning phase saw 385,945 rooms, a significant 34.6 percent increase. The region had 893,816 rooms under contract, a notable 17.8 percent uptick.
After the U.S., Mexico recorded about 13,301 rooms under construction, with Canada and Brazil following at 8,686 and 5,948 rooms, respectively, CoStar said.
Asia Pacific pipeline growth
Construction activity surged to approximately 503,770 rooms in Asia Pacific, a 4.4 percent increase from June 2023, CoStar found. However, final planning saw a decrease to about 91,282 rooms, reflecting a 22.9 percent decline from the previous year.
The planning phase included approximately 323,931 rooms, a 16.5 percent increase from the previous year. Additionally, the region had 918,983 rooms under contract, reflecting a 4.5 percent rise from the same period in 2023.
Vietnam followed China with 36,521 rooms in the region.
Germany tops Europe
Construction activity totaled around 165,858 rooms in Europe, a 2.4 percent decrease from June 2023, CoStar data showed. Final planning accounted for 93,241 rooms, reflecting a notable 20.9 percent drop from the previous year.
However, the planning phase saw an increase to approximately 160,651 rooms, up 8 percent from the previous year. Moreover, Europe had 419,750 rooms under contract, a 3.8 percent decline from the same period in 2023.
Germany led in construction activity with 27,302 rooms in Europe, closely followed by the U.K. with 25,312 rooms.
Saudi leads ME&A
Construction activity in the Middle East and Africa totaled approximately 109,005 rooms, a 5.6 percent decrease from June 2023, CoStar said. Final planning comprised 33,040 rooms, reflecting a notable 23.8 percent drop from the previous year.
The planning phase had approximately 80,020 rooms, a 9.2 percent decrease from the previous year. Additionally, the Middle East had 225,065 rooms under contract, reflecting a 4.2 percent decline from the same period in 2023.
Most of the region’s pipeline activity is focused in the Middle East, with Saudi Arabia leading at 42,786 rooms and the UAE following with 18,933 rooms under construction.
In April, CoStar's first quarter findings showed the Americas as the only region with a year-over-year pipeline surge, with the U.S. leading in room construction at around 156,525 rooms.
Stonebridge Cos. added the Statler Dallas, Curio Collection by Hilton, to its managed portfolio.
The hotel, opened in 1956 and relaunched in 2017, is owned by Centurion American Development Group.
The property is near Main Street Garden Park, the Arts District and the Dallas World Aquarium.
STONEBRIDGE COS. HAS contracted to manage the Statler Dallas, Curio Collection by Hilton in Dallas to its managed portfolio. The hotel, opened in 1956 and relaunched in 2017, is owned by Centurion American Development Group, led by Mehrdad Moayedi.
It has an outdoor pool and more than 26,000 square feet of meeting space, Stonebridge said in a statement. The downtown Dallas property is near Main Street Garden Park, the Arts District, the Kay Bailey Hutchison Convention Center, Deep Ellum, Klyde Warren Park, and the Dallas World Aquarium.
“The Statler is an extraordinary asset with a storied history in Dallas, and we are thrilled to welcome it to our managed portfolio,” said Rob Smith, Stonebridge’s president and CEO. “Its blend of modern hospitality with timeless character makes it a natural fit within our lifestyle collection. We look forward to honoring the property’s legacy while enhancing performance and delivering an elevated guest experience.”
Stonebridge, based in Denver, is a privately held hotel management company founded by Chairman Navin Dimond and led by Smith. The company recently added the 244-room Marriott Saddle Brook in Saddle Brook, New Jersey, to its full-service portfolio.
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GSA will keep federal per diem rates the same for FY 2026.
The lodging rate stays $110 and meals allowance $68.
AHLA raised concerns over the impact on government travel.
THE U.S. GENERAL Services Administration will keep standard per diem rates for federal travelers at 2025 levels for fiscal year 2026. The American Hotel and Lodging Association raised concerns that the decision affects government travel, a key economic driver for the hotel industry.
The standard lodging rate remains $110 and the meals and incidental allowance is $68 for fiscal year 2026, unchanged from 2025, GSA said in a statement.
“Government travel is a vital economic driver for the hotel industry and the broader travel economy,” said Rosanna Maietta, AHLA’s president and CEO. “That’s why it’s so important for government per diem rates to keep pace with rising costs across the economy. The GSA’s decision to keep per diem rates flat will place a strain on the hospitality industry as well as government travelers seeking lodging. A strong economy requires a thriving hospitality sector. We will continue to advocate with the GSA and members of Congress for per diem rates that reflect hotels’ rising costs of doing business.”
GSA sets per diem rates to reimburse federal employees’ lodging and meal expenses for official travel within the continental U.S., based on the trailing 12-month ADR for lodging and meals minus 5 percent. This is the first year in five that GSA has not raised the rates.
The federal administration said the decision reflects the federal government’s commitment to using taxpayer funds appropriately and for core mission activities. The steady per diem rates are enabled by the reduction in inflationary pressures from the previous administration.
“GSA's decision ensures cost-effective travel reimbursement while supporting the mission-critical mobility of the federal workforce,” said Larry Allen, associate administrator, GSA Office of Government-wide Policy.
The rate applies to federal travelers and those on government-contracted business for all U.S. locations not designated as “non-standard areas,” which have higher per diems. For fiscal year 2026, GSA will keep the number of non-standard areas at 296, unchanged from 2025.
Comfort Hotels will host the one-day Waffle Lounge in New York City on Aug. 21.
The Union Square event runs from 12 to 7 p.m.
Visitors can win a one-night stay at a participating Comfort or other Choice hotel.
CHOICE’S COMFORT HOTELS is bringing its signature breakfast item to life with the Waffle Lounge, a one-day pop-up event in New York City on Aug. 21. The event, timed to coincide with National Waffle Day on Aug. 24, highlights the brand’s role in offering guests a sense of home during their travels.
Waffles have been served at Comfort Hotels since the early 1990s, with more than 30 million made annually across its properties, Choice said in a statement. A recent national survey found that 70 percent of consumers prefer familiar meals over gourmet options.
“Waffles are a recognizable and meaningful part of the Comfort brand experience,” said Jenny Aboudou, Choice’s head of upper midscale brands. “Hosting a community event in New York City is a great way to highlight how this simple offering continues to resonate with travelers.”
The Waffle Lounge, located in Union Square, will be open from 12 to 7 p.m., the statement said. The event also marks more than 40 years of the Comfort brand, which includes Comfort Inn, Comfort Inn & Suites and Comfort Suites and operates more than 2,100 locations worldwide.
Guests can get free waffles with toppings, iced lattes, nail art, massage chairs and waffle-themed merchandise, Choice said. Visitors can also enter to win a one-night stay at a participating Comfort or other Choice hotels. The celebration extends online with a contest awarding 10 winners a one-night stay. To enter, users can tag a friend on Choice Hotels’ Instagram Waffle Day post and sign up for the Choice Privileges rewards program.
Choice recently launched two campaigns — “Stay in Your Rhythm” and “The WoodSpring Way” — to increase awareness and bookings across its four extended-stay brands.
Hospitality job openings fell by 308,000 in June, the largest drop of any industry.
National openings held at 7.4 million, a 4.4 percent rate.
Hospitality quit rates remain above the national average.
THE HOSPITALITY SECTOR saw the largest decline in job openings of any industry in June, according to the U.S. Bureau of Labor Statistics. Accommodation and food services fell by 308,000 positions from the previous month.
The “BLS Job Openings and Labor Turnover Survey” found the drop occurred despite overall U.S. openings holding at 7.4 million, a 4.4 percent rate. The hospitality category, which includes accommodation and food services, has been a major driver of labor demand in recent years but continues to face volatility in hiring needs and high turnover.
Nationally, the number of quits remained unchanged at 3.1 million, a 2 percent rate, the report said. However, hospitality continues to experience quit rates well above the national average, reflecting persistent retention challenges.
While industries such as retail trade and information saw increases in openings in June, the contraction in hospitality suggests a recalibration in staffing needs ahead of the second half of 2025. The next JOLTS report, covering July 2025, will be released on September 3 and will indicate whether the downturn in hospitality job openings is a short-term adjustment or the start of a longer trend.
A survey by Expert Market found 48 percent of accommodation businesses view staffing as their top risk for the year, followed by labor costs at 34 percent and maintenance at 27 percent.
North America recorded a 10 percent decline while Central America dropped 12 percent.
THE GLOBAL TRAVEL and tourism sector recorded an 8 percent year-on-year decline in total deal activity during the first half of 2025, according to market data firm GlobalData. Reduced investor appetite was seen across major deal types: mergers and acquisitions, private equity and venture financing.
GlobalData’s analysis shows venture financing deals fell by about 25 percent and private equity deals dropped by around 20 percent compared to the same period last year. M&A activity proved more resilient with a smaller 3.5 percent decline in volume. North America saw a 10 percent decline while Central America saw a 12 percent decline.
“The overall decline underscores a broader trend where macroeconomic factors and investor sentiments are reshaping deal-making strategies within the industry. The subdued activity suggests that dealmakers are becoming increasingly cautious, likely due to macroeconomic challenges and volatile market conditions,” said Aurojyoti Bose, lead analyst at GlobalData. “The decline in venture financing and private equity deals, suggests a dent in investor sentiment, emphasizing a trend of reduced risk appetite.”
The Asia-Pacific region posted growth, with deal volume rising 11 percent in H1 2025, driven by increased activity in Japan and India. In contrast, Europe saw a 19 percent drop, the Middle East and Africa fell 39 percent and South and Central America declined 12 percent.
Among major markets, the US, China and Germany all recorded declines in deal announcements while the UK maintained deal volumes at similar levels to last year.
GlobalData notes that historical figures may change if additional deals from earlier months are disclosed later.
Last year saw a 12.6 percent decline, with a total of 347 mergers and acquisitions, private equity and venture financing deals reported in the global travel and tourism sector during the first half of 2024.