Global expansion of the hotel industry in 2025

14-02-25

The global hotel industry is gearing up for a significant year of growth in 2025, with more than 524,000 new rooms expected to open worldwide, according to data from CoStar. Currently, approximately one million rooms are under construction, with the Asia-Pacific region leading the way, accounting for half of the total. Europe also plays a key role, representing 20% of the openings planned for this year. The cities of Shanghai, London, and Dubai are emerging as top destinations with the highest number of new hotel openings.

European outlook

In Europe, the current pipeline includes 171,294 rooms under construction, a figure that remains stable compared to the previous year. Additionally, 86,438 rooms are scheduled to begin construction within the next 12 months, reflecting a 22.3% decrease. Furthermore, there are 163,184 rooms in the planning phase. Including the openings that have already taken place in January, a total of 106,729 rooms are expected to open in Europe in 2025.

London leads hotel openings in Europe with 5,632 new rooms, followed by Istanbul with 3,920 and Dublin with 3,197. These numbers highlight the ongoing expansion of hotel infrastructure in key cities across the continent.

Growth in Asia-Pacific

The Asia-Pacific region demonstrates remarkable dynamism, with 511,666 rooms currently under construction, representing a 4.9% increase. However, the number of rooms scheduled to begin construction in the next 12 months stands at 47,241, a significant decline of 57.6%. On the other hand, 396,598 rooms are in the planning phase, marking a 36.4% increase.

Asia-Pacific is expected to record the highest number of hotel openings in 2025, with 228,468 new rooms. Chinese cities dominate this expansion: Shanghai leads with 7,953 rooms, followed by Chengdu with 4,821 and Shenzhen with 3,946. Kuala Lumpur in Malaysia also stands out with 3,841 rooms, followed by Suzhou with 3,403 and Bangkok with 3,199.

Development in the Middle East and Africa

In the Middle East and Africa, 104,572 rooms are currently under construction, with 50,683 openings projected for 2025. Additionally, 28,875 rooms are set to begin construction within the next 12 months, while 94,056 rooms are in the planning phase.

Dubai leads hotel openings in this region with 5,344 new rooms, followed by Mecca with 4,749, Qatar with 3,936, Riyadh with 3,485, and Jeddah with 3,156. This growth reflects continued investment in tourism infrastructure in the Middle East, driven by global events and economic diversification strategies.

Expansion in the Americas

In the Americas, 204,270 rooms are currently under construction, representing a 1.8% increase compared to the same period last year. The region leads in the number of rooms in the final planning phase, with 301,645, while another 407,254 rooms are planned for future development.

Excluding the United States, where cities like New York and Nashville lead new hotel openings, the Dominican Republic and Canada stand out with 3,543 and 1,460 new rooms scheduled for 2025, respectively. This growth underscores the expansion of the tourism sector in both emerging and established destinations across the Americas.

Global outlook

The year 2025 is shaping up to be a period of significant expansion for the global hotel industry, with a focus on key markets and emerging cities. This growth is driven by the recovery of international tourism, strategic investments in infrastructure, and an increasing demand for diverse lodging experiences.

Trends indicate a preference for developments in the luxury and upscale segments, as well as a growing emphasis on sustainability and the integration of advanced technologies in new properties. Additionally, partnerships between hotel chains and local developers are playing a crucial role in expanding into new markets and adapting to the cultural preferences and specific demands of each region.

In summary, the global hotel industry is on a path of strong growth for 2025, with strategic developments aimed at meeting the needs of modern travelers and capitalizing on emerging opportunities in the international tourism market.

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