Q1 2025 Market Insights
The rate of new additions to the completed and pipeline of developments in Q1 2025 showed a modest recovery, when compared to the previous quarter (69 in Q4 2024 vs 81 in Q1 2025).
In Q1 2025, the total project count grew to 1,746, consisting of 967 pipeline developments and 779 completed projects. The quarter saw 79 new pipeline additions, marking a 5% uptick from the preceding quarter. Pipeline-to-completion conversions remained modest, with 2 projects transitioning to completed status on a net basis during Q1 2025*. The quarter witnessed market entries from new brands, including John Richmond with 3 pipeline projects in the UAE and Maison Margiela in Dubai. Established brands expanded their geographical footprint, with notable developments including Nobu’s first ever branded project in the UK (Manchester), Nobu in Amsterdam (marking the first branded residences ever in the Netherlands), and the inaugural standalone Chedi Residences in Dubai, among others.
The regional distribution of the 79 new signings in Q1 2025 demonstrates a shift in market dynamics, with MENA emerging as the dominant region at 36% of total additions – a notable increase from the previous quarter’s performance. CALA maintained a strong presence with 22% of new signings, while Europe contributed 16-17% and North America accounted for 14%. Asia Pacific represented 9% of new project additions, and Africa showed renewed activity with 2-3% of signings after recording no additions in Q4 2024. Within CALA’s 22% share, Mexico drove 29% of the regional activity. MENA’s Q1 2025 expansion was dominated by the UAE, representing 75% of regional signings, with Egypt contributing 11%. North America’s growth was entirely concentrated in the United States (100%) with 36% of Q1 pipeline schemes located in either Miami or Fort Lauderdale, while Europe’s activity was led by Spain – a share of 31% out of Europe’s 17% contribution to Q1’s pipeline growth. Asia Pacific signings were primarily driven by India, accounting for 43% of the region’s additions. Standalone developments dominated Q1’s new signings at 41%, followed by Co-located projects at 37%, while Integrated developments comprised 22%. The quarterly pattern showed Urban settings leading with 56% of new signings, a significant shift from the previous quarter, followed by Resort locations at 36% and Urban-Resort settings at 8%. Q1 2025 analysis indicates that 71% of new projects originated from hotel brands, with the hospitality sector continuing to drive the majority of market activity, with the remaining 29% from non-hotel brands primarily led by Fashion (43%) and Design (35%) categories.
In this Q Report’s market spotlight, we look at the region of North America, with a particular focus on the Miami and Fort Lauderdale markets.
