The Q1 2025 U.S. Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE) reveals that at the close of the quarter, the pipeline consists of 6,376 projects and 749,561 rooms.
These first quarter totals represent a 5 per cent year-over-year (YOY) increase in projects and a 6 per cent YOY increase in rooms compared to Q1 2024.
Currently, there are 1,152 projects comprising 145,368 rooms under construction in the U.S., up 1 per cent by projects and 3 per cent by rooms YOY. Projects are scheduled to start construction anytime within the next 12 months, totalling 2,286 projects with 263,370 rooms at Q1—and reflecting a 1 per cent rise in both projects and rooms YOY. Most notably, project and room totals in the early planning stage experienced significant growth, increasing 10 per cent by projects and 13 per cent by rooms YOY; standing at 2,938 projects and 340,823 rooms, respectively.
The top three chain scales by total projects at the end of Q1 are upscale, at 1,443 projects/179,295 rooms, upper midscale, at 2,338 projects/226,349 rooms, and midscale at 974 projects/82,094 rooms. These three chain scales account for approximately 75 per cent of the projects in the total U.S. construction pipeline at the end of the first quarter. Notably, however, upper upscale chain scale projects in the U.S. pipeline reached record highs of 362 projects and 70,603 rooms at Q1, up 10 per cent by projects and 7 per cent by rooms YOY. Similarly, the midscale chain scale hit all-time highs at Q1 with 974 projects/82,094 rooms, increasing 10 per cent by projects and 9 per cent by rooms YOY.
LE’s latest U.S. Hotel Construction Pipeline Trend Report also highlights the continued growth in brand conversions at Q1, which reached a new record-high of 1,421 projects with 136,668 rooms, growing 13 per cent by projects and 16 per cent by rooms YOY. Combined hotel conversion and renovation activity hit a record-high project total at Q1 with 2,050 projects/269,435 rooms.
New project announcements (NPAs) announced into the pipeline during Q1 stand at 313 projects/37,912 rooms. Projects starting construction during the first quarter of 2025 increased 21 per cent by projects, and 41 per cent by rooms compared to Q4 2024 new construction start totals. This indicates that in Q1 developers pressed forward with their current projects, suggesting an upbeat approach to development for the first quarter of 2025.
From January through March of 2025, 161 new hotels with 18,767 rooms opened across the United States. For Q2-Q4 of 2025, LE analysts forecast an additional 579 projects with 64,781 rooms to open, resulting in 740 new hotels opening with 83,548 rooms by year-end, resulting in a 1.5 per cent growth rate. Looking ahead, LE analysts anticipate 848 new hotels with 92,892 rooms to open by year-end 2026, for an increase in supply of 1.6 per cent.
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