Hospitality Pipeline Overview: South-East Asia Region

We might have started to be more conscious about our environment, the consequences our actions tend to set off, and the general wellbeing of the communities we are working in, but as long as we are living in a capitalistic system based on consumption (and looks like it is not going away any time soon), quantitative metrics will always matter. This is why keeping track of the existing and future hospitality pipeline is of crucial importance to everyone in the industry. Today we are taking a look at what is going on in the South-East Asia region (spoiler alert: the state of affairs is certainly optimistic!).

According to Top Hotel Projects research, a total of 568 hotel schemes with 159,216 keys are in the pipeline across the region, with Thailand, Vietnam, and Indonesia all growing rapidly. Both 2021 and 2022 will see 121 new hotels open their doors. However, the respective room counts of 29,775 and 41,967 show that several unusually large projects are due to complete next year in the works and are due to be completed next year. Looking further, another 88 properties with 21,543 keys have been lined up for 2023, while 238 projects and 65,931 rooms are already on the books for 2024 and beyond.


When looking at geography more precisely, Thailand turns out to be the top performer, with 125 new hotels and 31,329 rooms scheduled for opening. No fewer than 46 of these properties will launch in Bangkok alone. Vietnam is following suit with 123 ongoing projects – and a whopping 51,287 rooms, thanks to the presence of a few megadevelopments on the coast. Indonesia ranks third, meanwhile, with 119 schemes and 21,824 keys on its development slate. The capital Jakarta is expected to welcome 24 of these new hotels, making it the third fastest-growing urban hotel market in the region, just behind Malaysian Kuala Lumpur, which will see 25 new units of supply on its hospitality scene.


As to the leading brands, a quick look at the players upping their game - Citadines Apart’hotels, Somerset Serviced Apartments, and Harris Hotels – shows the growing importance of the extended-stay market in this part of the world. Citadines is scheduled to expand its portfolio by 30 properties with 6,075 rooms, while the other two brands are following suit with a room count of 4,885 and 3,818 respectively.


Overall, things look quite positive for South-East Asia. A rather significant influx into the supply side of the market speaks about the optimistic sentiment both the owners and developers have for the long-term faith of the region. Hopefully, the vaccination pace can keep up with their plans and no more nasty surprises are awaiting us around the corner.

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