China’s hotel construction pipeline reached 3,588 projects in Q2 2026, with growth driven by upper midscale and upscale segments, renovations and brand conversions.
China’s hotel construction pipeline continued to expand in the second quarter of 2026, reaching a total of 3,588 projects with 632,256 rooms, according to the Q2 2026 China Construction Pipeline Trend Report by Lodging Econometrics (LE).
EastAsians & Diaspora
The pipeline includes 2,547 projects with 442,737 rooms currently under construction. In addition, projects scheduled to begin construction within the next 12 months reached 343 projects with 57,665 rooms.
Projects in the early planning stage also increased year on year. The segment closed the quarter with 698 projects and 131,854 rooms, representing growth of 4% by projects and 3% by rooms compared with the same period last year.
Upper midscale and upscale segments drive growth
Construction activity in China continued to be concentrated in the upper midscale and upscale hotel segments. The upper midscale chain scale reached a record high in Q2 2026, with 1,287 projects and 188,175 rooms.
The segment increased by 7% in projects and 3% in rooms year on year. Meanwhile, the upscale chain scale also reached a record level, with 1,087 projects and 219,168 rooms.
Together, the two segments account for 66% of all hotel projects and 64% of rooms in China’s construction pipeline. Their combined pipeline totals 2,374 projects with 407,343 rooms, representing a 4% increase in projects compared with the previous year.
Renovations and brand conversions reach record levels
Hotel renovations and brand conversions also recorded significant growth during the quarter. The combined segment reached a record high of 265 projects with 45,733 rooms.
The total increased by 24% in projects and 18% in rooms year on year. Brand conversions represented the majority of activity, accounting for 245 projects with 39,431 rooms, also reaching a record level.
Major cities continue to expand hotel supply
China’s largest hotel construction pipelines at the end of Q2 2026 were concentrated in major urban markets.
EastAsians & Diaspora
Chengdu ranked first with 127 projects and 22,785 rooms, followed by Guangzhou with 120 projects and 24,633 rooms. Shanghai recorded 109 projects and 20,342 rooms, while Hangzhou had 95 projects and 17,708 rooms. Beijing completed the top five with 81 projects and 13,073 rooms.
More than 1,100 new hotels expected to open in 2026
China opened 500 new hotels with 69,422 rooms during the first half of 2026. According to LE forecasts, an additional 631 hotels with 92,243 rooms are expected to open during the third and fourth quarters.
As a result, total new hotel openings in China are forecast to reach 1,131 properties with 161,665 rooms by the end of 2026.
Looking ahead, LE analysts expect 890 new hotels with 149,076 rooms to open in 2027. For the first time, the company has also released a forecast for 2028, projecting 680 new hotel openings with 118,996 rooms by the end of that year.
The latest figures highlight continued investment in China’s hospitality sector, with expansion supported by new developments, upscale accommodation demand, and increasing activity in hotel renovations and brand transformations.