As seen in Q2 2025 U.S. Hotel Construction Pipeline Trend Report According to Lodging Econometrics, at the end the second quarter there were 6,280 projects and 737,036 hotel rooms in the pipeline. Both projects and rooms have grown by 3% over the past year (YOY), compared with Q2 totals in 2024.
As of the end of the second quarter there were 1,120 projects, totaling 138 776 rooms, under construction. The total number of projects that are scheduled to begin construction within the next twelve months is 2,263, which includes 260,052 bedrooms. The pipeline’s under construction stage and the rooms scheduled to begin in the next year are both down slightly YOY as Q2 ends. The number of projects and rooms in the early planning stages increased by 14% and 13% YOY respectively.
Chain Scales Drive Pipeline Growth
LE analysts state that upper midscale chains scale has 2,282 project/219,875 room at Q2 and is the most active chain scale in the U.S. pipeline of construction. The upscale chain scale is second with 1,427 project/177,756 room. Together, upscale and upper middlescale chain scales account for 59% all the projects in the pipeline. The combined project counts of the top three chain scales (upper middlescale, midscale, and upscale) total 4,658 and 477,066 respectively, which represents 74% and 65%, respectively, of all pipeline projects.
The upper-upscale chain scale has seen a notable increase with an 11% increase YOY in projects, reaching 360 project/67,680 room. The midscale scale chain also experienced strong YOY gains with an increase of 6% in total projects. This equals 949 projects/79.435 rooms.
Brands that Stay Longer Continue to Dominate the Pipeline
The extended-stay brand continues to be popular among developers. It accounts for 38% in projects under construction and 43% of those scheduled to begin in the next 12 month. 37% are still at the planning stage. Total extended-stay pipeline is 2,473 projects/252 028 rooms. This represents 39% of the total pipeline.
The segment is led by middle-tier brands with 1,625 extended-stay projects, which equates to 152,557 rooms. This represents a 6% growth in projects and an 5% rise in rooms year on year. Lower tier brands are responsible for 178 projects/20 368 rooms. Upper tier brands have 670 projects/79 103 rooms.
In 2026, it is expected that 340 new extended stay hotels/34,909 rooms will open. This represents a 5.5% growth in extended-stay supply. In 2026 340 extended-stay hotel rooms/34,909 are expected to open. This will represent a 5.5% increase in extended-stay availability. In 2027 LE forecasts that 385 additional extended-stay rooms/39,801 will open.
Development and conversions
According to LE analysts in 2025, there will be 329 new hotels opening with 39 628 rooms across the U.S. The number of new projects announced (NPAs), in Q2, was 237/27.101 rooms. Construction began on 155 project/17,169 room.
Renovations and brand conversions combined reached 1,956 announced projects/259 495 rooms. Conversions grew strongly at 1,364 project/129 164 rooms. Total renovations were 592 projects and 130,331 bedrooms. Hotel conversions and renovations together represent 31% of projects and 35% all rooms in non-new construction pipeline.
2025-2027 Forecast for New Openings
LE has forecasted that by the end of 2025, there will be 735 new hotels in total with 84.788 rooms. That’s a growth rate of 1.5%. This year-end forecast for 2025 represents a 25 percent increase in the number of hotels openings from 2024. There were 590 new hotels with 68,716 total rooms. LE analysts expect 823 hotels/89.073 rooms will open by 2026. That represents a 1.6% increase.
LE has released its U.S. New Hotels Openings Forecast, estimating 902 projects/96.242 rooms in the U.S. by 2027. This marks a 1.7% increase in supply.
Hannah Paoletti
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+1 603 427 9556
Lodging Econometrics
