CoStar: NYC, Nashville Will See The Most New Hotel Rooms This Year

(Nashville, Tenn. Photo credit: Ushindi Namegabe via Pexels.com)

New York City and Nashville are projected to open the most hotel rooms in the U.S. in 2025, according to CoStar, Washington, D.C.

The firm said it expects 5,719 new guest rooms to open in New York in 2025, followed by 2,849 rooms in Nashville. San Diego (2,818 rooms), Dallas (2,749 rooms) and Phoenix (2,483 rooms) round out the top five markets for projected room openings.

“The ongoing development in New York City is not surprising given the market’s status and its high performance in recent years,” STR Senior Director of Analytics Isaac Collazo said. “With major sources of leisure and business travel, New York reported the highest occupancy level of any U.S. market in both 2023 and 2024. Though less rooms are in construction compared to 2023, there are more rooms in the planning and final planning stages, pointing to continued investment in the long term.

Collazo noted Nashville is in a similar situation, with most rooms set to open across the Upper-Midscale and Upscale classes this year. “Unlike New York City, Nashville’s construction total is up from last year,” he said.

CoStar said 721 hotels with 73,682 rooms opened last year. That compares to its projection of 953 hotels totaling 108,366 rooms this year and 1,865 hotels with 198,319 rooms in 2026.

“At the end of 2024, overall U.S. hotel construction activity was pretty muted with many projects remaining on the sidelines, as evidenced by the large gains in the planning stages,” Collazo said. “Restrictive capital and lending standards, along with high interest rates and construction costs, will keep construction volume well below the high seen in 2019 for some time.”