Global Hotel Pipeline Activity Slows Except Africa & Middle East

SUMMMARY – HOTEL PIPELINE ACTIVITY GLOBALLY EXPERIENCES A SLOWDOWN, EXCEPT FOR THE MIDDLE EAST & AFRICA REGION, WHICH SHOWS GROWTH. THE CONSTRUCTION OF THE HARD ROCK HOTEL IN HOLLYWOOD, FLORIDA, STANDS OUT AS A PROMISING EXCEPTION IN THE AMERICAS.

HOLLYWOOD, FLORIDA – As the hotel construction industry experiences a downturn worldwide, the Middle East & Africa region stands out as the exception, with an increase in hotel pipeline activity reported at the end of the third quarter, according to the latest data from STR in September 2022.

Here are the percentage changes in September 2022 compared to September 2021 for each region:

Hotel Pipeline Activity in Middle East & Africa

In Construction: 130,956 rooms (-3.2%)
Final Planning: 38,147 rooms (-5.9%)
Planning: 74,510 rooms (+18.9%)
Total Under Contract: 243,613 rooms (+2.2%)

The majority of hotel pipeline activity in the Middle East & Africa is concentrated in the Middle East, with Saudi Arabia leading with 39,070 rooms under construction, closely followed by the United Arab Emirates with 32,373 rooms.

Hotel Pipeline Activity in Europe

In Construction: 197,884 rooms (-14.1%)
Final Planning: 144,277 rooms (-16.1%)
Planning: 162,896 rooms (+9.7%)
Total Under Contract: 505,057 rooms (-8.3%)

Germany with 38,676 rooms and the U.K. with 29,471 rooms lead Europe in the total number of rooms under construction.

Hotel Pipeline Activity In Asia Pacific

In Construction: 485,250 rooms (+1.5%)
Final Planning: 131,427 rooms (-26.3%)
Planning: 287,572 rooms (-0.2%)
Total Under Contract: 904,249 rooms (-4.3%)

China takes the lead in the region with the highest number of rooms under construction, standing at 311,859, followed by Vietnam with 28,692 rooms.

America

In Construction: 207,585 rooms (-9.2%)
Final Planning: 203,069 rooms (-17.9%)
Planning: 329,789 rooms (+9.4%)
Total Under Contract: 740,443 rooms (-4.8%)

The United States holds the largest share of rooms under construction in the Americas region. Mexico ranks second with 14,077 rooms, followed by Canada with 7,126 rooms.

In light of the global slowdown, the construction of the Hard Rock Hotel in Hollywood, Florida, stands as a notable exception in the Americas region, providing a promising outlook for the local hospitality industry.

Overall, while hotel pipeline activity has slowed down across the globe, the Middle East & Africa region remains resilient, demonstrating positive growth.

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