Extended‑stay hotels fuel U.S. pipeline growth

At the close of the quarter, 1,120 projects representing 138,776 rooms were under construction. Projects scheduled to begin construction in the next 12 months totalled 2,263, accounting for 260,052 rooms. Both categories showed slight year-over-year declines. However, early planning stage activity rose significantly, with project and room counts increasing 13 per cent and 14 per cent respectively, to 2,897 projects and 338,208 rooms.

Chain scales drive pipeline growth

LE analysts report that the upper midscale chain scale leads the pipeline with 2,282 projects and 219,875 rooms. The upscale chain scale follows with 1,427 projects and 177,756 rooms. Combined, the upscale and upper midscale segments account for 59 per cent of all projects in the pipeline. Together with the midscale chain scale, the top three categories comprise 4,658 projects and 477,066 rooms, representing 74 per cent of all projects and 65 per cent of all rooms.

The upper upscale segment saw an 11 per cent increase in project count year-over-year, ending the quarter with 360 projects and 67,680 rooms. The midscale category grew 6 per cent in projects, reaching 949 projects and 79,435 rooms.

Extended-stay brands continue pipeline dominance

Extended-stay brands remain a significant focus for developers. These properties represent 38 per cent of projects under construction, 43 per cent of those set to begin in the next 12 months, and 37 per cent in early planning. The total extended-stay pipeline includes 2,473 projects with 252,028 rooms, marking a 3 per cent year-over-year increase in projects and 2 per cent in rooms.

Middle-tier extended-stay brands lead the category with 1,625 projects and 152,557 rooms, showing a 6 per cent increase in projects and 5 per cent in rooms. Upper-tier brands include 670 projects and 79,103 rooms, while lower-tier brands comprise 178 projects and 20,368 rooms.

During the first half of 2025, 148 new extended-stay hotels with 15,397 rooms opened in the U.S. LE analysts forecast 293 new extended-stay hotels totalling 30,341 rooms to open by year-end, a 5.0 per cent increase in supply. In 2026, 340 extended-stay hotels with 34,909 rooms are expected to open, followed by 385 hotels and 39,801 rooms in 2027, representing 5.5 and 5.9 per cent supply growth, respectively.

Development activity and conversions

LE reports that 329 new hotels with 39,628 rooms opened in the U.S. during the first and second quarters of 2025. New project announcements in Q2 included 237 projects with 27,101 rooms. Construction starts reached 155 projects and 17,169 rooms.

Announced renovations and brand conversions totalled 1,956 projects and 259,495 rooms. Of these, conversions accounted for 1,364 projects and 129,164 rooms, reflecting an 11 per cent year-over-year increase in both categories. Renovations comprised 592 projects and 130,331 rooms. Together, conversions and renovations represent 31 per cent of all projects and 35 per cent of rooms in the non-new-construction pipeline.

2025–2027 new openings forecast

For the remainder of 2025, LE forecasts 406 more projects with 45,160 rooms to open, bringing the annual total to 735 hotels and 84,788 rooms—a 1.5 per cent growth rate. This figure reflects a 25 per cent increase from 2024, when 590 hotels with 68,716 rooms opened.

For 2026, LE anticipates 823 hotels and 89,073 rooms will open, representing a 1.6 per cent growth rate. LE’s first outlook for 2027 projects 902 new hotels and 96,242 rooms, marking a 1.7 per cent increase in U.S. supply.