The Asia Pacific hotel development sector recorded a historic milestone at the close of the first quarter of 2026, with the region’s hotel construction pipeline reaching its highest project count on record, according to the latest report from Lodging Econometrics.
Data from the company’s Construction Pipeline Trend Report showed that the Asia Pacific region excluding China (APEC) closed Q1 2026 with 2,387 hotel projects comprising 442,973 rooms. The total pipeline increased 15% year-over-year (YOY) by projects and 9% by rooms, reflecting sustained development momentum across the region.
The report identified ongoing growth across all major construction stages. Projects currently under construction reached 963 projects and 202,877 rooms at the end of the quarter, increasing 10% by projects and 2% by rooms compared to the same period last year. These projects represented 40% of the total APEC pipeline.
Projects scheduled to begin construction within the next 12 months also expanded significantly, rising to 386 projects and 72,569 rooms. The segment grew 18% by projects and 9% by rooms YOY, indicating continued investor confidence and development activity throughout the region.
Meanwhile, projects in the early planning stage climbed to record-high levels of 1,038 projects and 167,527 rooms. According to the report, the segment recorded a 19% increase by projects and a 17% increase by rooms YOY, continuing an upward trajectory seen in recent quarters.
During Q1 2026, developers initiated construction on 144 hotel projects totaling 25,530 rooms. In the same period, 228 new hotel projects entered the regional pipeline.
Higher-end hotel developments continued to account for a substantial portion of the APEC construction pipeline. Luxury projects reached a record-high total of 404 projects with 75,803 rooms, increasing 16% by projects and 11% by rooms YOY.
Upper upscale projects also demonstrated strong growth, standing at 420 projects and 88,303 rooms at quarter’s close. The segment recorded increases of 13% by projects and 10% by rooms YOY.
Upscale hotels emerged as the largest chain scale segment in the pipeline, reaching record-high totals of 616 projects and 120,127 rooms. The category expanded 18% by projects and 16% by rooms compared to Q1 2025.
Upper midscale developments reached 393 projects and 75,185 rooms, posting growth of 11% by projects and 5% by rooms YOY.
The report identified the midscale segment as the fastest-growing category in the region. Midscale hotel projects climbed 26% by projects and 21% by rooms YOY, ending the quarter with 307 projects and 39,209 rooms.
Hotel conversion activity across APEC also accelerated sharply during the quarter. According to Lodging Econometrics, conversions reached record-high totals of 353 projects and 57,219 rooms at the close of Q1 2026. The segment recorded an 82% increase by projects and a 48% increase by rooms YOY.
Among individual markets, India continued to dominate the APEC hotel development landscape. The country’s pipeline reached record-high levels of 940 projects and 124,011 rooms, accounting for 39% of the entire regional pipeline.
Vietnam ranked second in the region with 258 hotel projects totaling 87,077 rooms. Japan followed with 221 projects and 33,079 rooms.
Indonesia secured the fourth-largest pipeline in the region, recording 182 projects and 30,679 rooms at the end of Q1 2026. Thailand completed the top five with 161 projects and 41,812 rooms.
At the city level, Bangkok emerged as the most active hotel development market in the APEC region. Thailand’s capital recorded 68 projects totaling 16,267 rooms.
Bengaluru ranked second among regional cities with 49 projects and 9,945 rooms. Jakarta followed closely in third place with 47 projects and 10,438 rooms.
Mumbai registered 43 projects with 8,171 rooms, while Tokyo also reported 43 projects, totaling 5,044 rooms, to round out the top five city markets in the region.
The report also highlighted ongoing hotel openings across the region. Through the first quarter of 2026, APEC recorded the opening of 70 hotels comprising 9,063 rooms.
Looking ahead, Lodging Econometrics forecasts that an additional 302 projects totaling 59,063 rooms are expected to open by the end of 2026. The firm also anticipates another 362 hotel projects with 67,962 rooms will open across the region in 2027.
The Construction Pipeline Trend Report from Lodging Econometrics reflects continued expansion in hotel development activity throughout the Asia Pacific region excluding China, supported by growth in luxury, upscale, midscale, and conversion projects across key regional markets.