Hotel Development Trends & Projections
Steady Pipeline at Q4 2025 Close, as Brand Conversions Hit New Record
Hotel construction in the United States closed the fourth quarter of 2025 with a total pipeline of 6,146 projects and 720,089 rooms, according to Lodging Econometrics’ (LE’s) latest Hotel Construction Pipeline Trend report.
The U.S. hotel pipeline shows steady activity across all project stages. Projects currently under construction total 1,088, comprising 134,380 rooms. Looking ahead, there are 2,175 projects with 253,750 rooms scheduled to start construction within the next 12 months. Projects in the early planning stage account for the majority of the projects in the active pipeline, closing the quarter with 2,883 projects and 331,959 rooms.
By chain scale, upper midscale hotels continue to lead the pipeline with 2,275 projects and 218,526 rooms. Upscale hotels follow with 1,336 projects and 167,316 rooms. The midscale segment maintained stability at Q4 with 956 projects and 80,260 rooms. Luxury hotels in the U.S. hotel construction pipeline showed positive year-end growth, reaching a record 95 projects with 22,045 rooms.
New project announcements during the fourth quarter of 2025 totaled 285 new projects with 32,358 rooms entering the pipeline. Construction starts throughout the year stand at 668 total projects, comprising 78,530 rooms, of which 148 projects comprising 17,623 rooms broke new ground in Q4.
Brand conversions in the pipeline experienced notable growth at the Q4 close, reaching a record high of 1,497 projects with 148,981 rooms, marking a 12% year-over-year (YOY) increase in projects and 16% YOY growth in rooms. Hotel renovations in the U.S. remained relatively unchanged at Q4 with 621 projects comprising 129,647 rooms. However, together, renovation and conversion projects represent a significant portion of hotel development activity, reaching a new record-high totaling 2,118 projects with 278,628 rooms.
New hotel openings in 2025 reached 640 with 74,079 rooms in the U.S., expanding the nation’s hotel supply (census) by 1.3% at year-end. Lodging Econometrics forecasts continued growth in the years ahead, with 708 new hotels and 80,034 rooms expected to open in 2026, for a 1.4% increase in supply. LE analysts expect accelerated growth in new hotel openings again in 2027 with 824 new hotels and 88,095 rooms scheduled to open by year-end, for a 1.5% anticipated expansion in the national hotel census.
At Q4 2025 Close, Southern Markets Drive Future Growth in U.S. Hotel Construction
The latest United States Construction Pipeline Trend Report from Lodging Econometrics (LE) reveals that the Dallas market continues to lead the nation’s hotel construction pipeline with 193 projects totaling 23,720 rooms. Atlanta follows with 159 projects/17,804 rooms, then Phoenix with 124 projects/16,303 rooms, Nashville with 120 projects/15,983 rooms, and Austin with 120 projects/14,120 rooms complete the top five markets.
In the under construction stage of the pipeline, Phoenix leads with 35 projects accounting for 4,829 rooms, followed by Dallas with 34 projects/3,663 rooms, New York with 29 projects/5,689 rooms, Miami with 24 projects/4,843 rooms, and Atlanta with 21 projects/2,206 rooms.
Dallas continues to lead with the largest number of planned construction starts anytime within the next 12 months with 74 projects/8,202 rooms. Atlanta follows with 58 projects/6,658 rooms, then Austin with 51 projects/5,499 rooms, while the Inland Empire and Nashville have 44 projects/4,467 rooms and 42 projects/5,981 rooms, respectively.
The early planning stage further demonstrates Dallas’ market strength, with 85 projects/11,855 rooms. Atlanta is next with 80 projects/8,940 rooms in early planning, while Nashville with 59 projects/7,648 rooms, the Inland Empire with 59 projects/5,908 rooms, and Orlando with 51 projects/10,777 rooms round out the top five.
These project counts underscore substantial activity in the U.S. hotel sector, with the South and Southwest regions continuing to lead new hotel construction.
LE’s latest report also reveals steady hotel renovation and conversion activity across the U.S. at the end of Q4 2025. Houston and Atlanta lead, each with 35 projects and 5,411 and 4,314 rooms, respectively, while Washington DC stands at 34 projects/3,963 rooms. Chicago follows with 29 projects/5,397 rooms, and New York completes the top five with 28 projects/7,293 rooms.
The fourth quarter saw 285 new project announcements nationwide, with Phoenix emerging as the leader with 12 projects/1,347 rooms, followed by Atlanta with 8 projects/854 rooms and Saint Louis with 7 projects/725 rooms. Tampa and the Inland Empire round out the top markets for new announcements with 6 projects/664 rooms and 5 projects/535 rooms, respectively.
Looking ahead to 2026, Phoenix is forecast to maintain a top position, opening 23 new hotels/3,326 rooms. New York is projected to open 22 hotels/3,795 rooms, while Dallas is forecast to open 19 hotels/2,295 rooms, Austin 13 hotels/1,738 rooms, and the Inland Empire 12 hotels/1,024 rooms.
LE’s extended forecast shows continued growth with new hotels projected to open in 2027. Dallas is expected to lead 2027 openings with 37 new hotels/3,198 rooms, followed by Atlanta with 28 hotels/2,554 rooms, the Inland Empire with 18 hotels/1,693 rooms, Phoenix with 17 hotels/2,078 rooms, and Los Angeles with 15 hotels/1,769 rooms.