- CoStar: Hotel rooms under construction fell for the 15th straight month.
- About 136,990 rooms were under construction, down 5.4 percent.
- Luxury segment expected to see the largest supply increase.
U.S. HOTEL ROOMS under construction fell year over year for the 15th consecutive month in March, according to CoStar. The number of rooms declined, while the number of projects remained similar, with 10 fewer hotels than a year earlier.
About 136,990 rooms were under construction in March, down 5.4 percent from March 2025, CoStar data showed. Final planning included 247,728 rooms, down 9.3 percent, while 333,467 rooms were in planning, down 7.3 percent.
By chain scale, the luxury segment had 8,039 rooms under construction, up 4.5 percent year over year. Upper upscale had 13,932 rooms, up 2 percent; upscale had 31,204 rooms, up 3.3 percent; upper midscale had 40,179 rooms, up 3.3 percent; midscale had 13,897 rooms, up 2.6 percent and economy had 4,398 rooms, up 0.7 percent.
“Despite a continued decrease in the number of rooms under construction, there are just 10 fewer hotels in that phase than in March 2025,” said Isaac Collazo, STR’s senior director of analytics. “We are also seeing a shift in movement through the pipeline compared to last year, with more hotels advancing from earlier stages into construction. Development is still moving forward, albeit at a lower volume.”
Collazo said the luxury segment is expected to see the largest percentage increase in supply, 4.5 percent, based on current construction.
“Going purely by number of rooms, the select-service segments remain at the top of the list by a wide margin,” he said.
In March 2025, CoStar reported that U.S. hotel rooms under construction declined year over year for the third consecutive month, with construction down 103 projects from a year earlier.
