Hotel pipeline down for most of the world at the end of 2023

Construction activity was down in every world region except Asia Pacific.

WASHINGTON – With substantial volume in the planning phases, the Americas was the only world region to show an increase in overall hotel pipeline activity, according to year-end data from CoStar. CoStar is a leading provider of online real estate marketplaces, information and analytics in the property markets.

December 2023 (% change in comparison with December 2022):


In construction: 171,354 (-9.7%)
Final Planning: 111,255 (-20.9%)
Planning: 178,580 (+16.3%)
Total Under Contract: 461,189 (-4.7%)

Among countries in the region, Germany (30,046 rooms) led in construction activity followed by the U.K. (28,503 rooms).

Asia Pacific

In construction: 486,410 (+2.0%)
Final Planning: 111,462 (+2.3%)
Planning: 290,699 (-4.8%)
Total Under Contract: 888,571 (-0.3%)

China leads the Asia Pacific region in total rooms in construction (309,024), followed by Vietnam (36,852).

Middle East & Africa

In construction: 112,128 (-8.6%)
Final Planning: 36,912 (-10.2%)
Planning: 80,294 (+7.3%)
Total Under Contract: 229,334 (-3.9%)

Most of the region’s pipeline activity is focused in the Middle East. Saudi Arabia (42,282) and the United Arab Emirates (18,998) show the most rooms in construction.


In construction: 200,615 (-3.1%)
Final Planning: 289,394 (+18.1%)
Planning: 370,033 (+30.0%)
Total Under Contract: 860,042 (+16.7%)

Planning phases of U.S. hotel pipeline reflect confidence in travel

Activity in the planning phases of the U.S. hotel pipeline remain up, while rooms in construction decreased after two months of gains, according to CoStar‘s December 2023 data. CoStar is a leading provider of online real estate marketplaces, information and analytics in the property markets.

U.S. Hotel Pipeline

December 2023 (percentage change from December 2022)

In construction: 152,114 rooms (-4.5%)
Final Planning: 255,039 rooms (+19.7%)
Planning: 318,597 rooms (+32.7%)

“The number of rooms in construction fell in December following a nearly 7% increase in October that held steady through November,” said Isaac Collazo, STR’s VP, analytics. “For most of 2023, rooms in construction trailed 2022, but the increases in both the final planning and planning stages point to confidence in travel for the foreseeable future. Historically, the final phase of the pipeline has declined month over month in December.”

Chain Scale Segments (% of existing supply, in-construction room count)

1.    Luxury (4.7%, 6,631 rooms)
2.    Upper Upscale (2.7%, 19,112 rooms)
3.    Upscale (3.9%, 34,457 rooms)
4.    Upper Midscale (3.5%, 42,467 rooms)
5.    Midscale (2.5%, 12,455 rooms)
6.    Economy (1.2%, 7,837 rooms)

Vicky Karantzavelou

Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor’s degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.

She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.

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