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LE: U.S. led 2023 global construction pipeline with 5,964 projects

China, India, UK and Saudi Arabia follow the U.S. in pipeline activity

LE: U.S. led 2023 global construction pipeline with 5,964 projects

THE GLOBAL HOTEL construction pipeline achieved unprecedented project counts in the fourth quarter of 2023, led by the U.S. with 5,964 projects and 693,963 rooms, according to Lodging Econometrics. The total pipeline comprises 15,196 projects and 2,367,727 rooms, signaling a remarkable 7 percent increase in projects and a 3percent increase in rooms year-over-year.

LE’s Q4 2023 Global Hotel Construction Pipeline Trend Report highlights the dominance of the U.S. and China, which collectively account for 64 percent of all global projects.


The U.S. led the global pipeline with 39 percent of total projects. Among the top five cities with the largest construction pipelines, three are in the U.S.: Dallas leads with 193 projects with 22,291 rooms, followed by Atlanta with 151 projects with 18,730 rooms, and Nashville with 123 projects with 16,148 rooms.

China contributes 25 percent, reaching an all-time high of 3,788 projects with 691,772 rooms, the report said. Following at a distance are India with 514 projects with 61,075 rooms, the U.K. with 322 projects with 43,990 rooms, and Saudi Arabia with 300 projects with 72,761 rooms.

Global construction pipeline overview

Globally, 1,978 new hotels opened in 2023, totaling 292,380 rooms, LE said. Of these, 636 hotels and 94,559 rooms opened in the fourth quarter. Currently, there are 6,160 projects underway, comprising 1,096,748 rooms globally, reflecting a 2 percent increase in projects year-over-year.

Furthermore, projects scheduled to commence construction within the next 12 months total 3,850 projects and 536,588 rooms, reflecting a 7 percent increase in projects and a 5 percent increase in rooms year-over-year, the report said. Similarly, projects slated to start construction in the next 12 months tally 3,850 projects and 536,588 rooms, marking a 7 percent increase in projects and a 5 percent increase in rooms year-over-year.

Projects and rooms in the early planning stage have reached all-time highs, totaling 5,186 projects with 734,391 rooms, with a 12 percent increase in projects and 6 percent in rooms year-over-year, it added. Furthermore, the global renovation and conversion pipeline has surged to its peak, reaching 3,291 projects with 510,584 rooms by the end of the fourth quarter of 2023.

Lodging Econometrics analysts forecast that in 2024, an additional 2,550 new hotels with 389,799 rooms are expected to open by year-end, followed by another 2,804 new hotels with 430,546 rooms projected to open in 2025.

In October, LE reported that by the end of the third quarter in 2023, there were 5,704 projects and 672,676 rooms in the U.S. construction pipeline, reflecting a 7 percent year-over-year increase in both projects and rooms.

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