The Q1 2025 U.S. Hotel Construction Pipeline Trends Report by reveals that the U.S. Hotel Construction Pipeline grew 5% YOY in the first three months of 2025 with 6,376 hotel projects and 749.561 rooms. Lodging Econometrics (LE). This represents an increase of 6% in rooms from the same quarter last year.
There are currently 1,152 projects, or 145 368 rooms, under construction. This is an increase of 1% for projects and 3% for rooms YOY. The total number of projects due to begin within the next twelve months is 2,286, and there are 263,370 rooms. This represents a 1% increase in both rooms and projects YOY. Early planning stage projects have grown significantly. They have increased by 13% in terms of rooms and 10% in terms of projects, totaling 2,938 rooms and 2,938 projects.
At the end of the first quarter, the top three categories of projects by total were upscale, upper middlescale and midscale. These three categories accounted for approximately 75% of all U.S. construction pipelines. In total, 1,443 upscale projects had 179,295 bedrooms, 2,338 upper midscale rooms and 974 midscale rooms. The midscale and upper upscale projects both reached new heights, with respective increases of 10% and 9%.
The report also highlighted the trend of brand conversions which, in Q1, reached a record high of 1,421 project with 136.668 rooms, marking an increase of 13% for projects and 16% for rooms year-on-year.
The number of new project announcements in Q1 was 313 projects, totaling 37,912 bedrooms. The number of rooms and projects for Q1 2025 construction projects increased by 41% over Q4 2024.
From January 2025 to March 2025 161 hotels were opened, with 18 767 rooms. LE predicts that an additional 579 new projects will open with 64,781 bedrooms by the end of 2025. This would result in 740 hotels with 83.548 rooms. This represents a 1.5% growth rate. LE anticipates that 848 new hotels will open with 92.892 rooms by the end of 2026. This represents a 1.6% increase in supply.
