U.S. Hotel Construction Pipeline Remains Steady Year-Over-Year, with Extended-Stay Hotels Comprising 40% of Total Projects at the Q3 2025 Close

According to the Q3 2025 U.S. Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE), the total U.S. pipeline has remained relatively unchanged year-over-year (YOY) and stands at 6,205 projects/728,416 rooms, holding steady by projects and up 1% by rooms YOY.

Construction Pipeline
At the close of the third quarter, there are 1,118 projects/137,620 rooms under construction. Projects scheduled to start construction in the next 12 months total 2,234 projects/258,973 rooms. Projects in early planning in the U.S. currently stand at 2,853 projects/331,823 rooms. Year-over-year, both the starts in the next 12-month stage of the construction pipeline and the early planning stage increased modestly, while the under construction stage saw a marginal decline. New project announcements for the quarter totaled 230 projects/28,951 rooms. Hotel renovations across the U.S. stand at 566 projects/123,142 rooms at Q3.

LE analysts report that the upper midscale chain scale continues to have the largest project count in the U.S. pipeline, with 2,279 projects/219,385 rooms. Following is the upscale chain scale with 1,383 projects/172,238 rooms. Together, these two chain scales comprise 59% of all projects in the total pipeline. The midscale segment stands at 947 projects/78,956 rooms, up 2% by both projects and rooms YOY. Combined, the top three chain scales by project count—upper midscale, upscale, and midscale—account for 65% of all projects in the total pipeline.

Extended-Stay Pipeline
Extended-stay hotel projects continue to be a significant component of the U.S. hotel construction pipeline. At Q3 2025, extended-stay projects total 2,468 projects/250,754 rooms accounting for 40% of all projects and 34% of all rooms in the total pipeline.

Middle tier extended-stay hotels represent the largest segment with 1,648 projects/154,499 rooms, up 3% by both projects and rooms YOY. Upper tier extended-stay hotels stand at 653 projects/77,019 rooms. Lower tier extended-stay accounts for 167 projects/19,236 rooms.

Within the extended-stay segment, 431 projects/45,542 rooms are currently under construction. Projects scheduled to start construction in the next 12 months stand at 983 projects/102,064 rooms. Extended-stay projects in the early planning stage total 1,054 projects/103,148 rooms.

Hotel Development Pipeline
Brand conversion activity reached record-high project totals and closed the quarter with 1,477 projects/148,035 rooms, up 18% by projects and 22% by rooms YOY. Combined, the total renovation and brand conversion pipeline in the U.S. stands at 2,043 projects/271,177 rooms, up 4% by projects and 3% by rooms YOY.

New Hotel Openings Forecast
Through the third quarter, 490 new hotels with 57,479 rooms opened in the U.S., with another 202 projects/22,368 rooms anticipated to open by year-end 2025. LE projects 2025 to finish with 692 new hotels with 79,847 rooms and a forecasted growth rate of 1.4%. Looking ahead, LE analysts forecast 754 new hotels/83,118 rooms to open in calendar year 2026 for a 1.5% growth rate. For 2027, LE forecasts 864 new hotels/91,571 rooms to open for a 1.6% growth rate.

Dallas Reaches New Milestone with 197 Projects and Leads the Nation’s Hotel Construction Pipeline at Q3 Close

As seen in the Q3 2025 United States Construction Pipeline Trend Report from Lodging Econometrics (LE), at the close of the third quarter, the five markets with the largest hotel construction pipelines are led by Dallas with 197 projects and 24,310 rooms, followed by Atlanta with 160 projects accounting for 18,239 rooms, Nashville with a record-high 130 projects and 17,183 rooms, Phoenix with 125 projects/16,481 rooms, and Austin with 124 projects accounting for 14,486 rooms.

At Q3, stand out U.S. markets with the greatest number of projects under construction are led by Phoenix with 36 projects/5,009 rooms. Dallas follows with 32 projects/3,668 rooms, then New York with 31 projects/5,458 rooms, while Miami and Atlanta follow with 21 projects each, accounting for 4,345 rooms and 2,503 rooms, respectively.

Dallas, with 80 projects/8,894 rooms, has the most projects scheduled to start within the next 12 months. Following Dallas are Atlanta with 61 projects/6,999 rooms, Austin with 57 projects/6,267 rooms, Nashville with 51 projects/6,591 rooms, and Inland Empire with 42 projects/4,118 rooms.

Dallas also tops the list of markets with the most hotel projects in the early planning stage at Q3, boasting 85 projects and 11,748 rooms. Atlanta follows with 78 projects and 8,737 rooms, while Nashville has 60 projects totaling 7,977 rooms. Inland Empire and Orlando round out the top five, with Inland Empire at 57 projects/5,685 rooms and Orlando at 51 projects/12,248 rooms.

Through the third quarter, there were a combined U.S. hotel renovations and brand conversions total of 2,043 active projects with 271,177 rooms across the nation. The markets with the largest combined number of renovations and conversions at Q3 are Washington, DC-MD-VA with 37 projects/4,745 rooms, Houston with 34 projects/5,360 rooms, Atlanta with 33 projects/3,988 rooms, Chicago with 31 projects/5,731 rooms, and San Antonio with 30 projects/2,933 rooms.

According to LE analysts, 490 new hotels with 57,479 rooms opened in the U.S. through the first three quarters of 2025. U.S. markets with the highest number of new openings through Q3 are Atlanta with 17 hotels/1,776 rooms, Dallas with 14 hotels/1,446 rooms, New York with 11 hotels/1,243 rooms, Nashville with 9 hotels/1,198 rooms, and Orlando with 8 hotels/2,827 rooms.

For year-end 2025, New York City leads with the largest number of forecasted new hotels at 21 new hotels/2,771 rooms. Atlanta and Dallas follow, each with 19 new hotels (2,144 and 1,918 rooms, respectively), then Phoenix with 13 new hotels/2,415 rooms, and Nashville with 11 new hotels/1,437 rooms.

Looking ahead, LE forecasts for 2026 show Dallas and Phoenix each leading with 25 new hotel openings (2,746 and 2,698 rooms, respectively), followed by Nashville with 15 new hotels/1,995 rooms, Atlanta with 15 new hotels/1,478 rooms, and Houston with 14 new hotels/953 rooms. In 2027, LE analysts forecast Dallas to lead with 34 new hotels/3,142 rooms, followed by Inland Empire with 26 new hotels/2,764 rooms, Atlanta with 26 new hotels/2,640 rooms, Phoenix with 19 new hotels/2,332 rooms, and Nashville with 16 new hotels/1,596 rooms.