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India Joins Vietnam, Japan, Thailand, Indonesia, and More Lead Record-Breaking Hotel Construction Surge in Asia Pacific


Published on
February 18, 2026

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India has now joined the ranks of Vietnam, Japan, Thailand, Indonesia, and other key players in a record-breaking surge in hotel construction across the Asia Pacific region. By the end of Q4 2025, the region’s hotel construction pipeline, excluding China, has reached a historic milestone with 2,323 ongoing projects totaling 433,241 rooms. This represents an 11% year-on-year increase in the number of hotel projects and a 5% rise in room count. These countries are leading the charge in this remarkable expansion, reflecting strong investor confidence and a growing demand for upscale accommodations. This unprecedented growth is reshaping the region’s hotel landscape and setting the stage for a new era of tourism and development.

Development Momentum Across All Stages

The Asia Pacific region saw 890 hotel projects under construction by the end of 2025, totaling 189,271 rooms, accounting for 38% of total projects and 44% of the rooms in the pipeline. This marks a 5% year-on-year increase in project numbers, indicating a robust pace of development.

Projects slated to begin within the next 12 months also experienced significant growth. The number of projects scheduled for upcoming construction surged by 8%, with 398 developments and 77,767 rooms. Notably, the volume of rooms set to be added saw a 15% year-on-year rise, reflecting a strong short-term construction outlook.

However, the most substantial growth was witnessed in the early planning stages, with projects in the planning phase rising by 19% year-on-year, totaling 1,035 projects and 166,203 rooms. This growth signals a robust pipeline that promises continued expansion for the hospitality sector in the years ahead.

High-End Chain Scales Drive Hotel Growth

Luxury, upper upscale, and upscale hotels are the primary drivers behind the Asia Pacific hotel construction boom. The region’s higher-end segments have broken previous records for both project numbers and room volumes by Q4 2025. Some key figures include:

Luxury: 398 projects and 75,190 rooms, a 14% rise in projects from the previous year.

Upper Upscale: 422 projects and 88,958 rooms, up 17% by projects and 13% by room volume.

Upscale: 568 projects and 111,296 rooms, marking a 12% increase in projects and a 9% rise in rooms.

Upper Midscale: 376 projects and 74,749 rooms, up 7% by projects.

The upscale and upper midscale segments together account for 990 projects and 200,254 rooms, or 43% of all projects and 46% of total rooms in the pipeline. This substantial growth illustrates the high demand for premium accommodations and the strategic importance of these segments for expanding hotel brands and increasing investor returns.

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India Leads Growth in Asia Pacific Hotel Development

India remains the standout performer in the Asia Pacific hotel construction pipeline, contributing significantly to the region’s growth. With 906 projects and 118,334 rooms recorded by the end of 2025, India saw a 31% increase in the number of projects and a 35% increase in room volume year-on-year. India now accounts for a staggering 39% of the region’s total hotel pipeline, underscoring its dominant role in the sector.

Other countries showing strong growth include:

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Vietnam: 248 projects and 84,079 rooms.

Japan: 200 projects and 32,209 rooms, up 23% by projects and 12% by rooms.

Indonesia: 181 projects and 30,761 rooms.

Thailand: 167 projects and 43,067 rooms.

These statistics reflect a balanced growth pattern across South Asia, Southeast Asia, and North Asia, positioning the region for sustained growth in the hospitality sector.

City-Level Growth in Southeast and South Asia

Several cities in Southeast and South Asia are emerging as hotspots for hotel development. Bangkok leads the region with 68 projects and 16,641 rooms under development. Jakarta follows closely with 46 projects and 10,159 rooms. Other cities showing notable growth include Bengaluru (45 projects and 9,199 rooms), Tokyo (42 projects and 5,497 rooms), and Phuket (41 projects and 9,583 rooms).

Bengaluru, in particular, has experienced remarkable growth, with a 45% increase in projects and a 55% rise in rooms year-on-year. Tokyo also stands out with an incredible 91% increase in project numbers and a 31% rise in room volume, further demonstrating the strong demand for both business and leisure accommodations.

These cities, spanning urban centers and resort destinations, reflect a diverse and dynamic growth across both business-driven and leisure-oriented hotel supply in the Asia Pacific region.

Ongoing Openings and Forecasted Expansion

In 2025, Asia Pacific welcomed 334 new hotel openings, adding 50,002 rooms to the market. The forecast for the coming years continues to be promising, with 338 new hotels and 67,317 rooms expected in 2026, followed by 349 new hotels and 64,491 rooms in 2027.

The consistent expansion is driven by increasing demand for high-quality accommodations, particularly in the luxury and upscale segments. India and Southeast Asia are expected to remain the focal points for hotel developers, with these regions positioned as key drivers of future growth.

Conclusion

The Asia Pacific hotel construction pipeline, excluding China, is experiencing unprecedented growth across all stages of development. The dominance of higher-end hotel segments and the impressive expansion in key markets like India, Vietnam, and Thailand point to a strong future for the region’s hospitality sector. As the pipeline continues to expand, the Asia Pacific region is poised to be a major player in the global hotel industry, contributing to tourism growth and economic development in the years ahead.