WASHINGTON– The volume of U.S. hotel rooms under construction decreased year over year for a third consecutive month, according to CoStarData for March 2025. CoStar, a leading online provider of real estate marketplaces and information in the property market, provides analytics as well as data.
U.S. Hotel Pipeline
March 2025
- Construction: 144,760 new rooms (-7.5%)
- Final Planning: 273,068 Rooms (+3.7%)
- Planning: 359.878 rooms (+10.9%).
The fact that less projects have been started is not surprising, given the uncertainty surrounding construction and the possibility for higher costs. There are 103 less hotels in construction than a year earlier, which means that one less hotel is at the end of the pipeline for most markets. The pipeline is still robust with 6,500 hotel rooms and 777,00 when you factor in the planning phase. We’ll pay close attention to the planning stages, as this is where economic uncertainty will have its greatest impact. The projects that are already under construction will be completed. Isaac Collazo, Senior Director of Analytics at STR
Chain Scale Segments % of Existing Supply, In-construction Room Count
- Luxury (4.1%, 6 421 rooms)
- Upper Upscale (2.6%, 18,813 rooms)
- Upscale (3.8%, 35,082 rooms)
- Upper Midscale (3.2%, 38,217 rooms)
- Midscale (2.7%, 13,883 rooms)
- Economy (0.9%) (5,933 rooms).
The decline in construction was concentrated at Upper Midscale hotels, which accounted more than a quarter of the difference between the room count and the number of hotel rooms compared to a year earlier.
Collazo, Even with a decrease in the number of hotels, Upper Midscale still has the most rooms and hotels under construction.
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CoStar Group, Inc.
CoStar Group, Inc. (NASDAQ: CSGP), is a leading online provider of real estate information and analytics. CoStar Group was founded in 1987 and conducts ongoing, extensive research to create and maintain the most comprehensive and largest database of real-estate information. CoStar, the world’s leading provider of commercial real estate news, analytics and information, allows clients to gain unparalleled insight into property values, market conditions, and availability. Apartments.com provides property owners and managers with a platform that is proven to help them market their apartments. LoopNet has thirteen million monthly unique visitors on average. STR offers premium data benchmarking and analytics for the global hospitality sector. Ten-X provides a platform that is the leader in online commercial real estate auctions and negotiated offers. Homes.com, the fastest-growing online residential marketplace, connects buyers, sellers, and agents. OnTheMarket is the leading residential property portal for the United Kingdom. BureauxLocaux has become one of France’s most popular property portals to buy and lease commercial real estate. Business Immo France is the leading news service for commercial real estate. Thomas Daily, Germany’s largest real estate online data database. Belbex offers the largest selection of commercial spaces for rent or sale in Spain. CoStar Group’s websites attracted 163 million unique monthly visitors, on average, in the third-quarter of 2024. CoStar Group, with its headquarters in Washington, DC, maintains offices all over the U.S., Europe, Canada, Asia, as well as Canada. We plan to use our corporate website CoStarGroup.com as a distribution channel for company material information from time to time. Visit https://www.costargroup.com/ for more information. CoStarGroup.com.
This news release contains “forward-looking” statements, including statements about CoStar’s beliefs or expectations regarding the future. These statements are made based on current opinions and are subjected to many uncertainties and risks that could lead to actual results being materially different from these statements. These differences could be caused or contributed to by a number of factors including the possibility that future media events may not result in an increase in occupancy rates. CoStar has provided additional information regarding potential factors which could lead to results differing materially from the ones anticipated in the forward looking statements. This includes, but is not limited to the filings that CoStar makes with the Securities and Exchange Commission from time to time, such as the Annual Report on Form 10K for the year ending December 31, 2023 and in Forms 10Q for the quarters ended March 31, 2020, June 30, 2030, and September 30 2023. CoStar’s forward-looking statement are based solely on information that was available at the time of this publication. CoStar is not obligated to update any forward-looking statement, whether in response to new information, future events, or otherwise.
Haley Luther
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