Hotel Pipeline Dips Year-Over-Year, Lodging Econometrics Reports
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The number of hotel projects in the pipeline fell slightly from a year ago, according to Lodging Econometrics, Portsmouth, N.H.
The research firm found 5,975 projects with 703,001 rooms in the pipeline at the end of the second quarter. One year ago there were 6,280 projects with 737,036 rooms in the pipeline.
“Midway through 2026, there are 1,081 projects comprising 133,216 rooms under construction, LE’s Q2 2025 U.S. Hotel Construction Pipeline Trend Report said. “Projects slated to start construction anytime within the next 12 months total 2,147 comprising 245,871 rooms. Projects and room counts in the early planning stage stand at 2,747 projects and 323,914 rooms.”
LE analysts report the upper-midscale and upscale chain scales continue to lead the hotel construction pipeline with the greatest number of both projects and rooms. The upper-midscale chain scale stands at 2,225 projects/214,027 rooms and the upscale chain scale at 1,282 projects/159,252 rooms. Together, those two chain scales comprise 59% of all projects and 53% of all rooms in the total pipeline.
The luxury chain scale reached a record high project total at Q2 with 103 projects/25,496 rooms, up 12% in projects and 21% in rooms year-over-year. The upper-upscale chain scale also hit a record high in the second quarter, reaching 367 projects/65,021 rooms.
New hotel project announcements in Q2 totaled 280 projects/33,423 rooms, up 18% in projects and 23% in rooms YOY. Construction starts reach 176 projects/20,056 rooms, up 14% in projects and 17% in rooms YOY.
Conversions hit a record high at Q2, with 1,567 projects/152,044 rooms in the pipeline, up 15% in projects and 18% in rooms YOY. Together, hotel conversions and renovations represent 2,097 projects/255,834 rooms, with combined project counts up 7% YOY.
According to LE analysts, 277 new hotels with 31,416 rooms opened in the U.S. during the first and second quarters of 2026. The LE forecast for the remainder of 2026 includes the opening of another 384 projects with 43,404 rooms, totaling 661 new hotels with 74,820 rooms by year-end for a 1.3% growth rate.
Looking ahead to 2027, LE analysts anticipate 738 new hotels/78,909 rooms to open for a 1.4% growth rate.
