U.S. Hotel Construction Forecasts 6,280 Projects at the End of Q2 2025

August 1, 2025

Lodging Economics (LE) recently unveiled its Q2 2025 U.S. Hotel Construction Pipeline Trend Report, which shows that 6,280 hotel projects (737,063 guest rooms) mark a 3% year-over-year (YOY) growth in projects and rooms compared to Q2 2024.

Projects and rooms in the early planning stage account for the greatest percentage of new hotels, having increased by 13% and 14%, respectively, at 2,897 projects and 338,208 guest rooms. At the end of Q2, there were 1,120 hotel projects (138,776 guest rooms) under construction; 2,263 projects are scheduled to start within the next 12 months, comprising 260,052 rooms. The last two categories—projects under construction and set to start—are down YOY.

Chain Scales

The upper midscale, upscale and midscale chain scales make up 4,658 projects (477,066 rooms), representing 74% of all projects and 65% of rooms in the hotel pipeline. Of the three, upper midscale has the highest number of projects, at 2,282 (219,875 rooms); upscale is second, at 1,427 projects (177,756 rooms); midscale, the third largest, has seen a 6% increase YOY, at 949 projects (79,435 rooms).

Extended-Stay Brands

Extended-stay hotels account for 39% of projects in the pipeline, reflecting a 3% increase in projects and 2% increase in rooms YOY. Of the 2,473 extended-stay projects (252,028 rooms) under development, middle-tier extended-stay hotel brands take the top spot, with 1,625 projects (152,557 rooms), a 6% increase in projects and 5% increase in rooms. In Q2 2025, 148 new extended-stay hotels opened in the United States; by the end of 2025, LE projects 293 total extended-stay hotels will open, an increase of 5%.

Extended stays are a big opportunity, according to Bruce Ford, senior vice president and director of global business development for LE. “The top franchise companies are seeing multiple price tier opportunities in extended-stay in greater numbers than before. The top six franchise companies all have at least three extended-stay brands in their portfolio.”

Hotel Renovations and Conversions

Renovations and conversions combined make up 1,956 projects, with conversions making up most of this, with 1,364 projects (129,164 rooms), an 11% increase in projects and rooms YOY; renovations account for 592 projects (130,331 rooms). The two represent 31% and 35% of projects and rooms, respectively.

Dallas Is on Top

At the end of Q2, Dallas led for the largest construction pipeline, with 199 projects (a record 24,497 rooms). Next are:

Atlanta, 165 projects (19,027 rooms)
Nashville, 128 projects (17,025 rooms)
Austin, 125 projects (14,598 rooms)
Phoenix, 123 projects (16,228 rooms)

While all these destinations show YOY growth, Austin’s 10% YOY project increase and 7% room increase are the greatest.

2025 and Beyond

The remainder of 2025 includes another 406 projects (45,160 rooms), ending the year with 735 new hotels, a growth of 1.5%. LE forecasts a 25% increase of total hotel openings as compared to 2024, which saw 590 openings. In 2026, 823 hotels are anticipated to open, a 1.6% increase; in 2027, 902 projects are expected to open, a growth of 1.7%.

Although total openings continue to increase, the size of these openings is decreasing. “The size of the projects that open continues to decline,” he says. “We are building more efficient, compact hotels than ever before. These efficient developments just operate better, especially in suburban locations.”