Finance & DevelopmentSTR: Four World Regions Show Year-Over-Year Decline in Construction Activity

STR: Four World Regions Show Year-Over-Year Decline in Construction Activity

LONDON—Each of the four world regions showed a year-over-year decline in hotel construction activity. Asia Pacific is closest to its 2022 comparable, according to March 2023 pipeline data from STR.

March 2023 (changes in comparison with March 2022) were as follows:

Europe
  • In Construction: 184,851 rooms (down 18.2 percent)
  • Final Planning: 133,580 rooms (down 15.9 percent)
  • Planning: 156,095 rooms (down 5.4 percent)
  • Total Under Contract: 474,526 (down 13.7 percent)

Germany (34,030) and the United Kingdom (29,160) lead Europe in total rooms in construction.

Asia Pacific
  • In Construction: 476,993 rooms (down 0.8 percent)
  • Final Planning: 105,435 rooms (down 29.6 percent)
  • Planning: 322,507 (up 1.9 percent)
  • Total Under Contract: 904,935 rooms (down 4.4 percent)

Among countries in the region, China has the most rooms in construction (299,458), followed by Vietnam (36,358).

Middle East & Africa
  • In Construction: 119,505 rooms (down 5.8 percent)
  • Final Planning: 45,529 rooms (up 20.4 percent)
  • Planning: 84,116 rooms (up 21.2 percent)
  • Total Under Contract: 249,150 (up 6.4 percent)

Most of the region’s pipeline activity is focused in the Middle East. Saudi Arabia (42,033) and the United Arab Emirates (22,324) lead in construction activity.

Americas
  • In Construction: 197,844 rooms (down 4.5 percent)
  • Final Planning: 277,598 rooms (up 32.2 percent)
  • Planning: 278,383 rooms (up 19.6 percent)
  • Total Under Contract: 753,825 (down 1.2 percent)

The United States holds the majority of rooms in construction in the region. After the United States, Mexico (10,803), Canada (5,899), and Brazil (5,549) show the highest number of rooms in construction.

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