APAC Construction Pipeline at an all time high, China Leading…

Asia Pacific Construction Pipeline reached a record-high 2,494 Projects/ 584,554 Rooms. It’s a 6% increase by Projects and 4% by Rooms year-over-year (YoY). Three countries, China, India and Indonesia, make up 90% of all Pipeline projects in the region.

Pipeline totals have been trending upward for 15 quarters from a shallow bottoming established in Q4 2009. After a brief mid-year slow down, regional growth has continued its upward thrust and by far remains the top targeted region for global franchise companies.

China dominates the Asia Pacific Pipeline with 1,695 Projects/ 435,006 Rooms. It has the largest Pipeline in the world by rooms and is 2nd to the U.S. by projects. China has 68% of all projects and 74% of rooms in the Asia Pacific region. Of the 25 markets with the largest Pipelines in the region, 20 are located in China.

Despite a minor economic slowdown, which caused some tapering of New Project Announcements (NPA’s) into the Pipeline, China’s Total Pipeline has been trending upward for 17 quarters and is at a new peak. Development is so strong that some cities like Hong Kong are concerned that future supply coming online might cause a prolonged glut of guest rooms.

Of the cities in the region with the largest Pipelines, 6 of the top 7 are in China. Shanghai has the most projects with 91 followed by Hong Kong with 73. Chengdu in the industrial heartland has the most rooms at 17,619.

India’s Pipeline, the second largest in the region, peaked in Q4 2010 and has been trending downward since. It now stands at 335 Projects/ 56,276 Rooms. India’s economy has been cooling for some time. Its Pipeline has dropped from 3rd to 4th largest in the world, being recently surpassed by Brazil.

In the last year there have been some indicators of an economic resurgence brought about by the recent statewide elections. The stock market has risen strongly, the rupee has gained strength and there are signs of foreign investment returning. Hopes are high that political change will also make it considerably easier to conduct business in India.

Buoyed by its oil and natural resource based economy, Indonesia is the world’s 16th largest economy. At 203 Projects/ 33,021 Rooms it has the 5th largest Pipeline in the world and the 3rd largest in the Asia Pacific region. Jakarta, the capital city, has 73 Projects/ 12,615 Rooms in the Pipeline. The market has the 3rd largest Pipeline in the Asia Pacific region and 6th largest globally.

Other countries in Southeast Asia combine to have 261 Projects/ 60,251 Rooms, an increase of 4% by Projects and 1% by Rooms YoY. Thailand leads with 44 Projects followed by Vietnam with 34, Malaysia with 33 and the Philippines and Singapore with 23 each.

Asia Pacific Construction Pipeline reached a record-high 2,494 Projects/ 584,554 Rooms. It’s a 6% increase by Projects and 4% by Rooms year-over-year (YoY). Three countries, China, India and Indonesia, make up 90% of all Pipeline projects in the region.

Pipeline totals have been trending upward for 15 quarters from a shallow bottoming established in Q4 2009. After a brief mid-year slow down, regional growth has continued its upward thrust and by far remains the top targeted region for global franchise companies.

China dominates the Asia Pacific Pipeline with 1,695 Projects/ 435,006 Rooms. It has the largest Pipeline in the world by rooms and is 2nd to the U.S. by projects. China has 68% of all projects and 74% of rooms in the Asia Pacific region. Of the 25 markets with the largest Pipelines in the region, 20 are located in China.

Despite a minor economic slowdown, which caused some tapering of New Project Announcements (NPA’s) into the Pipeline, China’s Total Pipeline has been trending upward for 17 quarters and is at a new peak. Development is so strong that some cities like Hong Kong are concerned that future supply coming online might cause a prolonged glut of guest rooms.

Of the cities in the region with the largest Pipelines, 6 of the top 7 are in China. Shanghai has the most projects with 91 followed by Hong Kong with 73. Chengdu in the industrial heartland has the most rooms at 17,619.

India’s Pipeline, the second largest in the region, peaked in Q4 2010 and has been trending downward since. It now stands at 335 Projects/ 56,276 Rooms. India’s economy has been cooling for some time. Its Pipeline has dropped from 3rd to 4th largest in the world, being recently surpassed by Brazil.

In the last year there have been some indicators of an economic resurgence brought about by the recent statewide elections. The stock market has risen strongly, the rupee has gained strength and there are signs of foreign investment returning. Hopes are high that political change will also make it considerably easier to conduct business in India.

Buoyed by its oil and natural resource based economy, Indonesia is the world’s 16th largest economy. At 203 Projects/ 33,021 Rooms it has the 5th largest Pipeline in the world and the 3rd largest in the Asia Pacific region. Jakarta, the capital city, has 73 Projects/ 12,615 Rooms in the Pipeline. The market has the 3rd largest Pipeline in the Asia Pacific region and 6th largest globally.

Other countries in Southeast Asia combine to have 261 Projects/ 60,251 Rooms, an increase of 4% by Projects and 1% by Rooms YoY. Thailand leads with 44 Projects followed by Vietnam with 34, Malaysia with 33 and the Philippines and Singapore with 23 each.

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