Hotel Development Trends & Projections
LE Debuts 2028 U.S. Hotel Openings Forecast, Projects 832 New Hotels to Open
As seen in the Q2 2026 U.S. Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE), at the end of the second quarter, there are 5,975 projects with 703,001 rooms in the pipeline.
Midway through 2026, there are 1,081 projects comprising 133,216 rooms under construction. Projects slated to start construction anytime within the next 12 months total 2,147 comprising 245,871 rooms. Projects and room counts in the early planning stage stand at 2,747 projects and 323,914 rooms.
LE analysts report that the upper midscale and upscale chain scales continue to lead the total U.S. construction pipeline with the greatest number of projects and rooms. The upper midscale chain scale stands at 2,225 projects/214,027 rooms and the upscale chain scale at 1,282 projects/159,252 rooms. Together, these two chain scales comprise 59% of all projects and 53% of all rooms in the total pipeline.
The luxury chain scale reaches a record high project total at Q2 with 103 projects/25,496 rooms, up 12% in projects and 21% in rooms year-over-year (YOY). The upper upscale chain scale also hits a record-high in the second quarter of 2026, reaching 367 projects/65,021 rooms.
New project announcements (NPAs) in Q2 total 280 projects/33,423 rooms, up 18% in projects and 23% in rooms YOY. Construction starts reach 176 projects/20,056 rooms, up 14% in projects and 17% in rooms YOY. Conversions hit a record high at Q2, with 1,567 projects/152,044 rooms in the pipeline, up 15% in projects and 18% in rooms YOY. Together, hotel conversions and renovations represent 2,097 projects/255,834 rooms, with combined project counts up 7% YOY.
According to LE analysts, 277 new hotels with 31,416 rooms opened in the U.S. during the first and second quarters of 2026. The LE forecast for the remainder of 2026 includes the opening of another 384 projects with 43,404 rooms, totaling 661 new hotels with 74,820 rooms by year-end for a 1.3% growth rate.
Looking ahead to 2027, LE analysts anticipate 738 new hotels/78,909 rooms to open for a 1.4% growth rate.
Announcing for the first time, LE’s U.S. New Hotel Openings Forecast for 2028 estimates 832 projects/88,321 rooms to open in the U.S., for a growth rate of 1.5% and marking continued growth in the industry.
LE Debuts 2028 New Hotel Openings Forecast as Dallas Drives U.S. Hotel Construction Activity in Second Quarter
According to the recent Q2 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 183 projects and 22,840 rooms. Atlanta follows with 157 projects/17,423 rooms, then Nashville with 122 projects/16,281 rooms, Austin with 116 projects/13,875 rooms, and Phoenix with 115 projects/16,136 rooms.
Additional markets reaching record-high project and room pipeline totals at Q2 include Indianapolis with 76 projects/8,557 rooms, Tampa with 61 projects/8,370 rooms, St. Louis with 59 projects/6,373 rooms, and Oahu Island with 11 projects/2,850 rooms.
As of the end of Q2, five U.S. markets stand out for their active under construction hotel projects. Dallas leads with 38 projects totaling 4,184 rooms, followed by Phoenix with 31 projects and 4,621 rooms. New York is third with 29 projects comprising 5,811 rooms, while Atlanta and Indianapolis tie with 22 projects each; Atlanta accounts for 3,020 rooms, while Indianapolis has 2,311 rooms.
At Q2, Dallas, with 68 projects/7,885 rooms, has the most projects scheduled to start in the next 12 months. Following Dallas are Atlanta with 61 projects/6,761 rooms, Austin with 59 projects/6,542 rooms, Nashville with 49 projects/6,623 rooms, and the Inland Empire with 43 projects/4,545 rooms.
Dallas tops the list of markets with the most hotel projects in the early planning stage at Q2 with 77 projects and 10,771 rooms. Atlanta follows with 74 projects and 8,351 rooms, while Inland Empire and Orlando tie with 54 projects each; Inland Empire accounts for 12,587 rooms and Orlando for 5,474 rooms. Nashville rounds out the top five with 53 projects and 7,023 rooms.
New York, with 11 projects/2,296 rooms, has the largest number of new project announcements (NPAs) into the pipeline at Q2. Tampa follows with 9 projects/902 rooms, then Phoenix with 8 projects/1,641 rooms, Orlando with 8 projects/1,292 rooms, and Nashville with 7 projects/844 rooms.
LE records a combined U.S. renovation and conversion total led by Houston with 35 projects/4,841 rooms, followed by Washington, DC-MD-VA with 33 projects/4,669 rooms, San Antonio with 32 projects/3,041 rooms, Chicago with 31 projects/5,732 rooms, and Atlanta with 31 projects/5,258 rooms.
Looking ahead, Phoenix leads the 2026 year-end new hotel openings forecast with 26 projects/3,615 rooms, followed by New York with 20 projects/3,079 rooms, Dallas with 20 projects/2,332 rooms, Inland Empire with 12 projects/1,024 rooms, and Austin with 11 projects/1,573 rooms.
For 2027, Dallas is forecast to lead new hotel openings with 27 projects/2,486 rooms, followed by Atlanta with 22 projects/2,145 rooms, Phoenix with 16 projects/1,989 rooms, Nashville with 16 projects/1,853 rooms, and Indianapolis with 15 projects/2,154 rooms.
Releasing for the first time this quarter, LE’s forecast for new hotel openings in 2028 shows Atlanta leading with 25 projects/2,345 rooms, followed by Dallas with 19 projects/2,042 rooms, Saint Louis with 14 projects/1,438 rooms, Austin with 14 projects/1,344 rooms, and Memphis with 14 projects/1,233 rooms.