Plans for new hotel construction projects continue to boom nationally, with a new report showing that the pipeline is currently up by a healthy 5% over where things stood exactly a year ago.
In its U.S. Hotel Construction Pipeline Trend, Lodging Econometrics says there are nearly 6,400 projects in the planning stage, representing some 749,500 rooms. Just counting the projects by the number of rooms shows an even stronger 6% jump over the first quarter of 2024.
In terms of actual construction: “There are 1,152 projects comprising 145,368 rooms,” says the report, representing a project increase of 1% over a year ago, and a total room increase of 3%.
Meanwhile, there are 2,286 projects expected to start before the end of this year, comprising 263,370 rooms.
The Portsmouth, New Hampshire-based Lodging Econometrics also notes that the new building splurge is being seen in all segments of the industry. Nearly 1,500 new hotels are going up in the upscale category, while the upper midscale sector is growing by 2,338 projects.
Construction in both categories is now at a record high.
The report additionally notes an increase in extended-stay hotel projects, as well as in sustainable and smart hotels. Largest cities for growth: New York, Los Angeles, and Miami, “driven by their robust demand for accommodations and ongoing urban development projects.”
But cities regarded as being in tertiary markets such as Nashville, Austin, and Charlotte are also seeing increased hotel construction, “benefitting from their rapidly growing populations and increasing appeal as business hubs.”
The strong early 2025 numbers follow an equally impressive 2024 fourth quarter which saw nearly 6,400 new hotels under construction, representing a record 746,986 rooms.
Those figures comprised a 7% growth in projects and 8% increase in rooms over the fourth quarter of 2023.
April 25, 2025
By Garry Boulard
Photo courtesy of Unsplash
