Hotel Development Trends & Projections
Extended Stay Projects Account for 40% of the U.S. Hotel Construction Pipeline as Luxury and Upper Upscale Projects Reach Record Highs at Q3 2026
According to the Q3 2026 U.S. Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE), the total U.S. pipeline stands at 5,901 projects/692,999 rooms.
At the close of the third quarter, there are 1,094 projects/137,371 rooms under construction. Projects scheduled to start construction in the next 12 months total 2,175 projects/246,793 rooms. Projects in early planning stand at 2,632 projects/308,835 rooms. Construction starts for the quarter total 152 projects/19,106 rooms, while new project announcements total 195 projects/22,016 rooms.
LE analysts report that the luxury chain scale reaches record-high project and room counts at Q3, with 108 projects/25,776 rooms, up 14% by projects and 19% by rooms YOY. The upper upscale chain scale also reaches a record-high project count at the close of the third quarter, standing at 375 projects/66,028 rooms, up 3% by projects YOY. The upper midscale chain scale continues to have the largest project count in the U.S. pipeline, with 2,206 projects/211,553 rooms. Following is the upscale chain scale with 1,257 projects/157,225 rooms. Together, the upscale and upper midscale chain scales account for 66% of the projects and 63% of the rooms in the pipeline. The midscale chain scale stands at 918 projects/76,487 rooms.
Brand conversion activity stands at 1,516 projects/146,544 rooms, up 3% by projects YOY. Combined with renovation activity of 525 projects/105,365 rooms, the total renovation and brand conversion pipeline in the U.S. stands at 2,041 projects/251,909 rooms.
At the close of Q3, extended stay projects in the U.S. pipeline total 2,352 projects/236,219 rooms, accounting for 40% of projects and 34% of rooms in the total pipeline. Middle tier extended stay brands make up the majority of the segment with 1,628 projects/152,287 rooms, representing 28% of projects in the total U.S. pipeline, and 69% of the extended stay pipeline. Upper tier extended stay stands at 575 projects/66,866 rooms, while lower tier extended stay accounts for 149 projects/17,066 rooms.
Of the extended stay projects in the pipeline, 424 projects/44,689 rooms are currently under construction. Extended stay projects scheduled to start construction in the next 12 months total 1,006 projects/102,999 rooms, up 2% by projects and 1% by rooms YOY. Another 922 projects/88,531 rooms are in the early planning stage.
At Q3, there are 1,506 shared site projects/149,303 rooms in the U.S. pipeline. A shared site refers to a single property in which more than one hotel or lodging brand operates within a shared development property. Of these shared sites, at Q3, 264 projects/29,021 rooms are under construction, 607 projects/58,364 rooms are scheduled to start construction in the next 12 months, and 635 projects/61,918 rooms are in early planning. The upper midscale chain scale accounts for the largest share of shared site projects at 44%.
Through the third quarter, 407 new hotels with 46,031 rooms have opened in the U.S., with another 191 projects/22,160 rooms anticipated to open by year-end 2026. LE projects 2026 to finish at 598 new hotels with 68,191 rooms, a 1.2% supply increase. Looking ahead, LE analysts forecast 668 new hotels/72,667 rooms to open in calendar year 2027, representing a 1.3% supply increase. For 2028, LE forecasts 775 new hotels/86,377 rooms to open, amounting to a supply increase of 1.5%.
Dallas Leads U.S. Markets in Projects Under Construction, Scheduled to Start, and in Early Planning at Q3 2026
According to the recent Q3 2026 United States Construction Pipeline Trend Report from Lodging Econometrics (LE), at the close of the quarter, the five markets with the largest hotel construction pipelines are led by Dallas with 184 projects/23,646 rooms. Atlanta follows with 154 projects/16,938 rooms, then Nashville with 122 projects/16,197 rooms, Austin with 112 projects/13,169 rooms, and Inland Empire with 110 projects/10,909 rooms.
As of the end of Q3, five U.S. markets stand out for their active under construction hotel projects. Dallas leads with 36 projects totaling 3,764 rooms, followed by New York with 28 projects and 6,965 rooms. Phoenix is third with 25 projects comprising 3,992 rooms, while Atlanta has 24 projects with 2,412 rooms, and Indianapolis rounds out the top five with 22 projects and 3,065 rooms.
At Q3, Dallas, with 72 projects/8,544 rooms, has the most projects scheduled to start construction in the next 12 months. Following Dallas are Atlanta with 57 projects/6,633 rooms, Austin with 55 projects/5,855 rooms, Nashville with 53 projects/6,994 rooms, and Inland Empire with 46 projects/4,803 rooms.
Dallas tops the list of markets with the most hotel projects in the early planning stage at Q3, with 76 projects/11,338 rooms. Atlanta follows with 73 projects/7,893 rooms, while Orlando and Inland Empire tie with 51 projects each; Orlando accounts for 12,253 rooms and Inland Empire for 5,001 rooms. Nashville rounds out the top five with 48 projects and 6,648 rooms.
Dallas and Atlanta, with 8 projects each, have the largest number of new project announcements (NPAs) in the pipeline at Q3, with Dallas accounting for 1,908 rooms and Atlanta for 704 rooms. Tampa, Indianapolis, and Cincinnati follow with 5 projects each, accounting for 736 rooms, 625 rooms, and 508 rooms, respectively. In total, 86 NPAs accounting for 11,089 rooms enter the pipeline across the top 50 U.S. markets during the third quarter.
LE records a combined U.S. renovation and conversion total led by Washington, DC-MD-VA with 32 projects/4,325 rooms, followed by Atlanta with 31 projects/5,258 rooms and Houston with 31 projects/4,426 rooms. Dallas, Chicago, and San Antonio each have 30 projects, with Dallas accounting for 5,306 rooms, Chicago for 5,287 rooms, and San Antonio for 2,935 rooms.
During the third quarter, 56 new hotels/6,664 rooms open across the top 50 U.S. markets. Phoenix leads with 6 hotels/612 rooms, followed by Dallas with 4 hotels/621 rooms, Inland Empire with 4 hotels/425 rooms, and Atlanta with 4 hotels/421 rooms.
Looking ahead, Phoenix leads the 2026 year-end new hotel openings forecast with 25 projects/3,517 rooms, followed by Dallas with 18 projects/2,050 rooms, New York with 14 projects/2,495 rooms, and Atlanta and Houston with 10 projects each, accounting for 1,125 rooms and 903 rooms, respectively.
For 2027, Dallas is forecast to lead new hotel openings with 28 projects/2,604 rooms, followed by Atlanta with 20 projects/1,937 rooms, Phoenix with 17 projects/2,094 rooms, Indianapolis with 16 projects/2,261 rooms, and New York with 15 projects/2,557 rooms.