3,230 Hotel Projects Hit APAC and Middle East Pipelines

Hotel developers are setting all-time construction pipeline records across both the Asia-Pacific excluding China (APEC) market and the Middle East, according to Q2 2026 data from Lodging Econometrics reported by Hotel Business. The Middle East hit 724 projects and 178,003 rooms [1], while APEC reached 2,506 projects and 452,972 rooms [2], reflecting substantial expansion across both distinct regions.

Which countries lead hotel construction activity in each region?

Saudi Arabia and India serve as the primary engines of pipeline expansion within their respective regions, as reported by Hotel Business [[1], [2]]. In the Middle East, Saudi Arabia led all nations with 387 projects and 105,648 rooms, expanding 13% by projects and 15% by rooms year-over-year [1]. Egypt followed with 167 projects and 35,185 rooms, while the United Arab Emirates posted 103 projects with 24,985 rooms [1]. Oman and Iraq recorded 27 projects and 10 projects, respectively [1]. Together, these five countries constitute 96% of the Middle Eastern project total [1].

In the APEC region, India set a record total of 1,033 projects and 137,601 rooms, up 36% by projects and 39% by rooms compared to the previous year [2]. Vietnam ranked second with 265 projects and 81,848 rooms, followed by Japan with 207 projects and 31,360 rooms [2]. Indonesia registered 189 projects and 31,772 rooms, while Thailand recorded 167 projects and 42,069 rooms [2]. These five territories represent 74% of the APEC pipeline [2].

What do the development stages reveal about future supply timing?

Early planning stages account for the largest or fastest-growing shares in both regional studies, indicating extended construction volumes over the coming years [[1], [2]]. According to Lodging Econometrics, early planning in the Middle East surged 33% year-over-year to 221 projects and 42,972 rooms [1]. Active building sites in the Middle East comprise 330 projects and 82,353 rooms, which represents 46% of its pipeline [1]. Projects scheduled to begin within 12 months stand at 173 projects and 52,678 rooms [1].

Across the APEC region, early planning projects represent 45% of the total, reaching a record 1,119 projects and 181,397 rooms [2]. Active construction in APEC accounts for 989 projects and 199,362 rooms, while projects slated to break ground within 12 months total 398 projects and 72,213 rooms [2]. Construction starts during the quarter in APEC totaled 101 projects and 16,628 rooms [2].

Which chain scales dominate the regional pipelines?

Luxury and upscale tiers control the largest shares of development across both territories [[1], [2]]. Hotel Business reported that luxury projects in the Middle East reached an all-time high of 207 projects and 45,446 rooms [1]. The region's upscale category accounts for 184 projects and 52,621 rooms, while upper-upscale holds 178 projects and 43,896 rooms [1]. Combined, luxury and upscale account for 54% of Middle East pipeline projects [1].

In APEC, upscale hotels represent the single largest chain scale with 658 projects and 121,365 rooms [2]. Upper-upscale followed with 435 projects and 91,231 rooms, while luxury reached 432 projects and 79,928 rooms [2]. Upper-upscale and upscale combined account for 44% of APEC pipeline projects [2]. Lower chain scales also expanded, with APEC midscale properties hitting 310 projects and 39,113 rooms [2].

How fast are conversions and renovations expanding?

Hotel conversions and refurbishment projects reached unprecedented levels in both territories as owners look to reposition existing real estate [[1], [2]]. In the Middle East, combined renovations and brand conversions reached 101 projects and 29,658 rooms, up 51% year-over-year [1]. Brand conversions specifically drove this momentum, rising 47% by projects to 88 properties and 92% by rooms to 24,466 rooms [1].

APEC recorded 346 conversion and renovation projects comprising 58,429 rooms, up 36% by projects and 25% by rooms compared to the prior year [2]. In addition to conversions, new project announcements across APEC reached 217 projects and 34,938 rooms during the quarter [2].

What are the projected opening timelines through 2028?

Hotel completions will rise steadily across both markets through 2028 based on Lodging Econometrics forecasts [[1], [2]]. The Middle East completed 22 hotels and 3,981 rooms in the first half of 2026, with 61 hotels and 11,168 rooms scheduled for the second half [1]. Looking ahead, the region expects 91 hotel openings (22,875 rooms) in 2027 and 102 openings (24,284 rooms) in 2028 [1].

APEC opened 148 properties with 20,594 rooms in the first half of 2026, with an additional 236 properties and 41,217 rooms scheduled to debut in the second half [2]. For 2027, Lodging Econometrics projects 374 hotel openings comprising 68,396 rooms across APEC [2]. The newly released 2028 projection forecasts 363 hotel openings totaling 59,659 rooms [2].