Hotel Development Trends & Projections
Strong Conversion and New Development Project Totals in the U.S. Hotel Construction Pipeline at Q1 2026 Close
As seen in the Q1 2026 U.S. Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE), at the end of the first quarter, there are 6,020 projects with 705,825 rooms in the pipeline, reflecting sustained development activity across the country.
Of those, 1,071 projects comprising 132,016 rooms are under construction. Another 2,164 projects with 249,465 rooms are scheduled to start construction within the next 12 months, while projects in the early planning stage stand at 2,785 projects and 324,344 rooms.
Within the chain scales, the luxury segment achieved a record-high project count in Q1, reaching 102 projects with 25,527 rooms, up 16% by projects and 23% by rooms year-over-year (YOY). The top three chain scales (upscale, upper midscale, and midscale) account for 75% of the projects in the total U.S. construction pipeline – and each is expected to post its highest new hotel opening total since 2022.
Beyond the construction pipeline, LE’s latest data points to broad-based activity across other key industry metrics. Hotel conversions remain strong, standing at 1,461 projects and 141,971 rooms — up 3% by projects and 4% by rooms year-over-year — while combined conversion and renovation activity reaches 2,041 projects and 258,665 rooms. Meanwhile, Q1 construction starts totaled 140 projects with 15,546 rooms, and new project announcements totaled 166 projects and 20,864 rooms.
In the first quarter of 2026, 126 new hotels opened in the U.S., accounting for 14,614 rooms. For the remaining three quarters of 2026, LE forecasts another 556 projects with 62,709 rooms to open, resulting in a total of 682 new hotels with 77,323 rooms by year-end and representing a 1.4% increase in new hotel supply. Looking ahead to 2027, LE analysts anticipate 750 new hotels with 81,199 rooms to open in the U.S., for a 1.4% supply increase.
Dallas Tops U.S. Hotel Pipeline; Phoenix Records Double-Digit Under Construction Growth at Q1 2026
The recent U.S. Construction Pipeline Trend Report from Lodging Econometrics (LE) reveals that Dallas continues to lead all U.S. markets with 184 projects/22,861 rooms in its hotel construction pipeline at the close of the first quarter. Following Dallas is Atlanta with 158 projects/17,524 rooms, then Phoenix with 123 projects/16,111 rooms, Nashville with 120 projects/16,740 rooms, and Austin with 117 projects/13,850 rooms.
U.S. markets with the greatest number of projects already under construction at Q1 are Dallas with 37 projects/4,111 rooms, Phoenix with 36 projects/5,096 rooms, and New York with 26 projects/4,636 rooms. Miami follows with 24 projects/5,317 rooms, and Atlanta has 20 projects/2,008 rooms under construction. Phoenix stands out with particularly strong momentum, posting year-over-year gains of 19% in projects and 11% in rooms under construction.
Dallas also has the most projects scheduled to start within the next 12 months (SN12), with 68 projects/7,909 rooms. Following Dallas are Atlanta with 61 projects/6,748 rooms, Austin with 56 projects/6,097 rooms, the Inland Empire with 47 projects/4,939 rooms, and Nashville with 46 projects/6,583 rooms. In the SN12 project stage, Austin recorded an increase of 19% in projects and 14% in rooms year-over-year.
At the end of Q1, Dallas again leads the U.S. with the largest number of projects in early planning at 79 projects/10,841 rooms. Atlanta follows with 77 projects/8,768 rooms, then Nashville with 57 projects/7,993 rooms, the Inland Empire with 54 projects/5,266 rooms, and Phoenix with 52 projects/6,957 rooms. Phoenix had notable growth in this project stage, with year-over-year increases of 13% in projects and 28% in rooms.
In the top 50 U.S. markets, a total of 75 new projects, accounting for 12,137 rooms, were announced during 2026’s first quarter. The leading markets for new project announcements include Phoenix with 9 projects/901 rooms and Tampa with 6 projects/694 rooms. New York, Nashville, Chicago, Atlanta, Inland Empire, and Indianapolis each recorded four new project announcements.
Renovation and brand conversion activity remained robust throughout the United States at Q1. Houston leads with the largest count of combined renovation and conversion projects at 35 projects/5,336 rooms. Dallas, Atlanta, and Washington, D.C. each follow with 31 projects, accounting for 5,430 rooms, 3,836 rooms, and 3,757 rooms, respectively. San Antonio has 30 projects/2,881 rooms under renovation or conversion at the close of the first quarter.
In the 2026 forecast for new hotel openings, Phoenix tops the list with 27 hotels/3,640 rooms, followed by New York with 21 new hotels/3,458 rooms, Dallas with 20 new hotels/2,328 rooms, and both Austin and the Inland Empire should each have 12 new hotel openings, accounting for 1,693 rooms and 1,024 rooms, respectively.
In the 2027 forecast, LE analysts expect Dallas to lead new hotel openings with 27 new hotels/2,484 rooms, followed by Atlanta with 24 new hotels/2,199 rooms, then Phoenix with 17 new hotels/2,076 rooms. Indianapolis and the Inland Empire round out the top markets with 16 forecasted new hotel openings each, accounting for 2,246 and 1,410 rooms, respectively.