Robust global growth in hotel development during the second quarter of 2025 is masking underperformance in the Middle East & Africa (MEA), the only region to show declines in key hotel pipeline indicators, according to CoStar’s latest data.
According to Tourism Review News, in Europe, the hotel construction pipeline saw a 3.4% bump, now featuring 171,503 rooms being built. Early planning here jumped quite a bit, 15.4% to 185,311 rooms.
Contracted projects also rose, reaching 431,736 rooms (up 2.9%). However, the final planning phase dipped rather sharply (down 19.7%), leaving 74,922 rooms. The UK, with 24,711 rooms, and Germany, at 23,400 rooms, are largely responsible for driving Europe’s hospitality boom.
Asia-Pacific: Robust Expansion Fueled by China, India, and Vietnam
Asia-Pacific’s growth was pretty impressive, a 4.0% increase in rooms under construction, coming in at 523,672. Early planning there also saw a surge, 21.0% to 391,877 rooms. Contracted projects were also up, reaching 957,254 rooms (4.2% rise). But final planning here really took a hit, plummeting 54.3% to only 41,705 rooms. China is the frontrunner here (318,327 rooms under construction), followed by India (40,950 rooms), then Vietnam (36,338 rooms), reflecting strong demand for hospitality services in these areas.
Middle East and Africa: A Regional Decline
The Middle East and Africa was the only region to register a drop in its hotel construction pipeline, a 2.6% decrease bringing them to 219,237 rooms. The final planning phase saw a really significant drop (34.2%), and rooms under construction also fell (down 5.4% to 103,115). Early planning did, however, experience a rise, up 13.7% to 94,391 rooms. Saudi Arabia (46,015 rooms) and the United Arab Emirates (16,271 rooms) still lead the way there, despite the broader regional downturn.
Americas: Mixed Results with U.S. Dominance
The Americas saw a 1.1% increase to a total of 902,952 rooms under construction. Rooms actually being built decreased, though (down 9.3% to 189,102). But, early planning climbed (6.4% to 410,322 rooms), and the final planning phase experienced a small rise (1.5% to 303,528 rooms). The United States dominates here, with 138,922 rooms. Then come Mexico (14,562 rooms), Canada (9,128 rooms), and Brazil (5,334 rooms), highlighting just how much the region counts on the U.S. market for growth.
A Global Outlook with Regional Variations
Generally speaking, the global hotel construction boom we saw in Q2 2025 shows that there’s a lot of optimism in the hospitality sector. It’s being propelled by more travel and, in most cases, economic recovery. While Europe and Asia-Pacific are seeing real growth, and the Americas are making steady progress, the downturn in the Middle East and Africa points to particular challenges there. The future looks pretty dynamic, as places like China, the UK, and the U.S. keep building up their hospitality offerings.
