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Lodging Econometrics Completes Development Pipelines and Three Year Supply Growth Forecasts for 21 Asian Countries

Lodging Econometrics (LE), the Industry Authority for Hotel Real Estate, announced the completion of a Development Pipeline with a Three Year Forecast for New Hotel Openings for each of the 21 different countries in the Asia Pacific region.

LE’s president, Patrick Ford, said, “At the end of 3Q06 there were 656 projects in the Asian pipeline being actively pursued by developers.  Those Asia projects have 169,691 guestrooms and average 259 rooms each. 371 of the projects are already Under Construction.  The pipeline is moving forward at a feverish pitch as developers rush to complete their projects.”   

Many of the underdeveloped countries in the region are enjoying strong economic growth spurts. “In the case of China and India, economic growth is so explosive it may well be overheating.” explained Ford.  “Business and tourist travel are such big components of the region’s current growth cycle that it is no surprise that there are unusual and significant growth opportunities available for International Hotel Companies.”
 
Development Growth in China is Unprecedented

China has the largest development pipeline in the region, and is second globally only to the United States.  China has 316 projects and 107,725 guestrooms spread throughout the pipeline.  The room count is a staggering 63% of the total rooms in the entire Asian pipeline.
Development is fast tracked everywhere as many major cities in China are presently “under roomed”.  Accordingly, 65% of China’s pipeline projects and 70% of the guestrooms are presently Under Construction.  

International travel, both commercial and tourism is roaring.  By the end of ’06 China will have grown to be the fourth largest tourist destination in the world.  It expects to surpass the U.S. and become number one during the next decade.  As the Chinese middle class is increasingly benefiting from the expanding economy, China’s native tourist travel is growing impressively as well.

Beijing’s pipeline has the fastest pace.  Their pipeline consists of 36 projects with 11,288 guestrooms.  7 hotels are scheduled to open in the 4th quarter, an additional 10 in ’07 and 12 in early ’08.  “Their development pace is geared to getting ready for the Olympic Games which will be held in Beijing in the summer of ’08,” said Ford.

Shanghai’s pipeline, at 43 projects and 13,957 guestrooms, is larger. The New Openings will be spaced more evenly over the decade; 15 through ’07, 14 in ’08 and another 14 in ’09 and beyond.  Shanghai’s pipeline is timed for the World Expo that it will host in 2010.

Macau, Asia’s gaming mecca, will benefit from both the ’08 Olympic Games and the World Expo in 2010, as will many of China’s other primary and secondary cities.  Macau has 24 active projects in the pipeline with 17,909 guestrooms.  Projects average an amazing 746 rooms in size.  21 of the 24 pipeline projects are already Under Construction.  Macau presently does 90% of the Las Vegas annual gaming revenue and is charging ahead to surpass them during the next decade.

Another 6 cities – Tianjin, Guangzhou, Ningbo, Chengdu, Shenzhen and Sanya – combine for a total of 66 projects in the pipeline.  Two-thirds, or 44 projects, are Under Construction and are timed to capitalize on the rapidly growing commercial and tourism travel boom ahead.
 

This entry was posted on Friday, October 20th, 2006 at 8:57 pm and is filed under Hospitality News. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.