Hotel construction in the Asia-Pacific region has reached record highs according to a recent report by hotel real estate experts Lodging Econometrics (LE).
There are a total of 1,555 hotels with 366,679 rooms in the construction pipeline in the 24 countries that make up the region.
China accounts for half of all projects (782 hotels), with as many as 598 hotels already under construction as the nation gears up for the 2008 Olympic Games in Beijing.
LE president Patrick Ford says growth in the region is being fuelled by the availability of investment capital and the emergence of hotels as a mainstream asset class.
“Many of the major markets are enjoying occupancy percentages in the 70s, some even in the 80s,” Ford says.
“For some, average room rates increased at double digit, year-over-year pace in 2006 and again in 2007.
“As a result, many markets are nearing peak performance, creating ideal conditions for the new construction spurt.”
The total number of planned guestrooms in Macau, Shanghai and Beijing is exceeded only by development in Las Vegas, Washington DC and Dubai.
By Elizabeth Clifford-Marsh