Global hotel activity continues to expand, with the exception of the Middle East and Africa

The hotel industry remains dynamic globally, with sustained growth in development projects in nearly every region. According to the latest report from CoStar, a leading provider of real estate data and analytics, a widespread increase in hotel pipeline activity was recorded at the close of the second quarter of 2025, except in the Middle East and Africa, which reported a 2.6% drop in the number of rooms under contract.

Europe showed moderate progress, with a total of 431,736 rooms under contract (up 2.9%). The United Kingdom and Germany lead the continent in terms of rooms currently under construction, with 24,711 and 23,400 respectively.

Asia Pacific continues to be one of the industry's strongest drivers, with a total of 957,254 rooms under contract (+4.2%). China leads the way with 318,327 rooms under construction, followed by India (40,950) and Vietnam (36,338). Strong growth in the planning stage (+21%) is also notable.

The Americas also saw slight growth (+1.1%), with 902,952 rooms under contract. Despite a 9.3% drop in the construction phase, increases were observed in the final planning (+1.5%) and initial planning (+6.4%) stages. The United States leads the region with 138,922 rooms under construction, followed by Mexico (14,562), Canada (9,128), and Brazil (5,334).

In contrast, the Middle East and Africa were the only regions to record an overall decline in hotel activity, with 219,237 rooms under contract (-2.6%). However, a significant concentration of hotel activity remains in countries such as Saudi Arabia (46,015 rooms under construction) and the United Arab Emirates (16,271).

These data confirm a trend of recovery and expansion in the hotel sector globally, with a strong commitment to new developments, especially in Asia and the Americas, and a cautious outlook for the Middle East and Africa.

Source: CoStar Group