According to a recent China Construction Pipeline Trend report from Lodging Econometrics (LE), the China Pipeline at Q1 2016 has 2,448 Projects/549,222 Rooms, down 8% by projects and 1% by rooms Year-Over-Year (YOY). This is the second consecutive quarter of YOY decline.
Hotels Under Construction, at 1,789 Projects with 375,638 Rooms, constitutes 68% of China’s pipeline rooms and is down 9% YOY.
Reflecting concerns about the slowdown in the economy and the availability of financing, announced projects are slow to migrate forward up the Pipeline towards construction. As a result, projects scheduled to Start in the Next 12 Months, 294 Projects/71,471 Rooms, and in Early Planning, 365 Projects/102,113 Rooms, hit new cyclical highs.
